Full Text of SB2914 96th General Assembly
SB2914sam001 96TH GENERAL ASSEMBLY
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Sen. Chris Lauzen
Filed: 3/11/2010
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| AMENDMENT TO SENATE BILL 2914
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| AMENDMENT NO. ______. Amend Senate Bill 2914 by replacing | 3 |
| everything after the enacting clause with the following:
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| "ARTICLE 1. | 5 |
| Section 1-5. The Illinois Pension Code is amended by | 6 |
| changing Sections 2-126, 14-133, 15-157, 16-152, and 18-133 as | 7 |
| follows: | 8 |
| (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126) | 9 |
| Sec. 2-126. Contributions by participants. | 10 |
| (a) Each participant shall contribute toward the cost of | 11 |
| his or her
retirement annuity a percentage of each payment of | 12 |
| salary received by him or
her for service as a member as | 13 |
| follows: for service between October 31, 1947
and January 1, | 14 |
| 1959, 5%; for service between January 1, 1959 and June 30, | 15 |
| 1969,
6%; for service between July 1, 1969 and January 10, |
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| 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | 2 |
| service after December 31, 1981, 8 1/2%. | 3 |
| (b) Beginning August 2, 1949, each male participant, and | 4 |
| from July 1,
1971, each female participant shall contribute | 5 |
| towards the cost of the
survivor's annuity 2% of salary. | 6 |
| A participant who has no eligible survivor's annuity | 7 |
| beneficiary may elect
to cease making contributions for | 8 |
| survivor's annuity under this subsection.
A survivor's annuity | 9 |
| shall not be payable upon the death of a person who has
made | 10 |
| this election, unless prior to that death the election has been | 11 |
| revoked
and the amount of the contributions that would have | 12 |
| been paid under this
subsection in the absence of the election | 13 |
| is paid to the System, together
with interest at the rate of 4% | 14 |
| per year from the date the contributions
would have been made | 15 |
| to the date of payment. | 16 |
| (c) Beginning July 1, 1967, each participant shall | 17 |
| contribute 1% of
salary towards the cost of automatic increase | 18 |
| in annuity provided in
Section 2-119.1. These contributions | 19 |
| shall be made concurrently with
contributions for retirement | 20 |
| annuity purposes. | 21 |
| (d) In addition, each participant serving as an officer of | 22 |
| the General
Assembly shall contribute, for the same purposes | 23 |
| and at the same rates
as are required of a regular participant, | 24 |
| on each additional payment
received as an officer. If the | 25 |
| participant serves as an
officer for at least 2 but less than 4 | 26 |
| years, he or she shall
contribute an amount equal to the amount |
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| that would have been contributed
had the participant served as | 2 |
| an officer for 4 years. Persons who serve
as officers in the | 3 |
| 87th General Assembly but cannot receive the additional
payment | 4 |
| to officers because of the ban on increases in salary during | 5 |
| their
terms may nonetheless make contributions based on those | 6 |
| additional payments
for the purpose of having the additional | 7 |
| payments included in their highest
salary for annuity purposes; | 8 |
| however, persons electing to make these
additional | 9 |
| contributions must also pay an amount representing the
| 10 |
| corresponding employer contributions, as calculated by the | 11 |
| System. | 12 |
| (e) Notwithstanding anything in this Section to the | 13 |
| contrary, effective July 1, 2011, all participants shall be | 14 |
| required to contribute 7% of salary, and no prior contribution | 15 |
| increases or other additional contributions specified by this | 16 |
| Section shall apply to any participant for service on or after | 17 |
| July 1, 2011. With respect to participants who are not later | 18 |
| entrants, the 7% contribution rate specified in this paragraph | 19 |
| shall be replaced with the contribution rates in effect under | 20 |
| Sections 2-126(a)-(c) if the benefit provisions added under | 21 |
| Sections 2-400, 2-405, 2-410, 2-415, or 2-420 are invalidated. | 22 |
| (Source: P.A. 90-766, eff. 8-14-98.) | 23 |
| (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133) | 24 |
| Sec. 14-133. Contributions on behalf of members. | 25 |
| (a) Each participating employee shall make contributions |
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| to the System,
based on the employee's compensation, as | 2 |
| follows: | 3 |
| (1) Covered employees, except as indicated below, 3.5% | 4 |
| for
retirement annuity, and 0.5% for a widow or survivors
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| annuity; | 6 |
| (2) Noncovered employees, except as indicated below, | 7 |
| 7% for retirement
annuity and 1% for a widow or survivors | 8 |
| annuity; | 9 |
| (3) Noncovered employees serving in a position in which | 10 |
| "eligible
creditable service" as defined in Section 14-110 | 11 |
| may be earned, 1% for a widow
or survivors annuity
plus the | 12 |
| following amount for retirement annuity: 8.5% through | 13 |
| December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | 14 |
| in 2004 and thereafter; | 15 |
| (4) Covered employees serving in a position in which | 16 |
| "eligible creditable
service" as defined in Section 14-110 | 17 |
| may be earned, 0.5% for a widow or survivors annuity
plus | 18 |
| the following amount for retirement annuity: 5% through | 19 |
| December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 20 |
| and thereafter; | 21 |
| (5) Each security employee of the Department of | 22 |
| Corrections
or of the Department of Human Services who is a | 23 |
| covered employee, 0.5% for a widow or survivors annuity
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| plus the following amount for retirement annuity: 5% | 25 |
| through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | 26 |
| in 2004 and thereafter; |
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| (6) Each security employee of the Department of | 2 |
| Corrections
or of the Department of Human Services who is | 3 |
| not a covered employee, 1% for a widow or survivors annuity
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| plus the following amount for retirement annuity: 8.5% | 5 |
| through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 6 |
| 11.5% in 2004 and thereafter. | 7 |
| (7) Notwithstanding anything in this Section to the | 8 |
| contrary, effective July 1, 2011, all covered employees | 9 |
| shall be required to contribute 5.25% of compensation, all | 10 |
| noncovered employees shall be required to contribute 7% of | 11 |
| compensation, and no prior contribution increases or other | 12 |
| additional contributions specified by this Section shall | 13 |
| apply to any employee for service on or after July 1, 2011. | 14 |
| With respect to participants who are not later entrants, | 15 |
| the contribution rates specified in this paragraph shall be | 16 |
| replaced with the contribution rates in effect under | 17 |
| Sections 14-133(a)(1) through (a)(6) if the benefit | 18 |
| provisions added under Sections 14-400, 14-405, 14-410, | 19 |
| 14-415, or 14-420 are invalidated. | 20 |
| (b) Contributions shall be in the form of a deduction from
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| compensation and shall be made notwithstanding that the | 22 |
| compensation
paid in cash to the employee shall be reduced | 23 |
| thereby below the minimum
prescribed by law or regulation. Each | 24 |
| member is deemed to consent and
agree to the deductions from | 25 |
| compensation provided for in this Article,
and shall receipt in | 26 |
| full for salary or compensation. |
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| (Source: P.A. 92-14, eff. 6-28-01.) | 2 |
| (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157) | 3 |
| Sec. 15-157. Employee Contributions. | 4 |
| (a) Each participating employee
shall make contributions | 5 |
| towards the retirement
benefits payable under the retirement | 6 |
| program applicable to the
employee from each payment
of | 7 |
| earnings applicable to employment under this system on and | 8 |
| after the
date of becoming a participant as follows: Prior to | 9 |
| September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | 10 |
| to August 31, 1955, 5%; from
September 1, 1955 to August 31, | 11 |
| 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | 12 |
| are to be considered as normal contributions for purposes
of | 13 |
| this Article. | 14 |
| Each participant who is a police officer or firefighter | 15 |
| shall make normal
contributions of 8% of each payment of | 16 |
| earnings applicable to employment as a
police officer or | 17 |
| firefighter under this system on or after September 1, 1981,
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| unless he or she files with the board within 60 days after the | 19 |
| effective date
of this amendatory Act of 1991 or 60 days after | 20 |
| the board receives notice that
he or she is employed as a | 21 |
| police officer or firefighter, whichever is later,
a written | 22 |
| notice waiving the retirement formula provided by Rule 4 of | 23 |
| Section
15-136. This waiver shall be irrevocable. If a | 24 |
| participant had met the
conditions set forth in Section | 25 |
| 15-132.1 prior to the effective date of this
amendatory Act of |
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| 1991 but failed to make the additional normal contributions
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| required by this paragraph, he or she may elect to pay the | 3 |
| additional
contributions plus compound interest at the | 4 |
| effective rate. If such payment
is received by the board, the | 5 |
| service shall be considered as police officer
service in | 6 |
| calculating the retirement annuity under Rule 4 of Section | 7 |
| 15-136.
While performing service described in clause (i) or | 8 |
| (ii) of Rule 4 of Section
15-136, a participating employee | 9 |
| shall be deemed to be employed as a
firefighter for the purpose | 10 |
| of determining the rate of employee contributions
under this | 11 |
| Section. | 12 |
| (b) Starting September 1, 1969, each participating | 13 |
| employee shall make
additional contributions of 1/2 of 1% of | 14 |
| earnings to finance a portion
of the cost of the annual | 15 |
| increases in retirement annuity provided under
Section 15-136, | 16 |
| except that with respect to participants in the
self-managed | 17 |
| plan this additional contribution shall be used to finance the
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| benefits obtained under that retirement program. | 19 |
| (c) In addition to the amounts described in subsections (a) | 20 |
| and (b) of this
Section, each participating employee shall make | 21 |
| contributions of 1% of earnings
applicable under this system on | 22 |
| and after August 1, 1959. The contributions
made under this | 23 |
| subsection (c) shall be considered as survivor's insurance
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| contributions for purposes of this Article if the employee is | 25 |
| covered under
the traditional benefit package, and such | 26 |
| contributions shall be considered
as additional contributions |
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| for purposes of this Article if the employee is
participating | 2 |
| in the self-managed plan or has elected to participate in the
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| portable benefit package and has completed the applicable | 4 |
| one-year waiting
period. Contributions in excess of $80 during | 5 |
| any fiscal year beginning before
August 31, 1969 and in excess | 6 |
| of $120 during any fiscal year thereafter until
September 1, | 7 |
| 1971 shall be considered as additional contributions for | 8 |
| purposes
of this Article. | 9 |
| (d) If the board by board rule so permits and subject to | 10 |
| such conditions
and limitations as may be specified in its | 11 |
| rules, a participant may make
other additional contributions of | 12 |
| such percentage of earnings or amounts as
the participant shall | 13 |
| elect in a written notice thereof received by the board. | 14 |
| (e) That fraction of a participant's total accumulated | 15 |
| normal
contributions, the numerator of which is equal to the | 16 |
| number of years of
service in excess of that which is required | 17 |
| to qualify for the maximum
retirement annuity, and the | 18 |
| denominator of which is equal to the total
service of the | 19 |
| participant, shall be considered as accumulated additional
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| contributions. The determination of the applicable maximum | 21 |
| annuity and
the adjustment in contributions required by this | 22 |
| provision shall be made
as of the date of the participant's | 23 |
| retirement. | 24 |
| (f) Notwithstanding the foregoing, a participating | 25 |
| employee shall not
be required to make contributions under this | 26 |
| Section after the date upon
which continuance of such |
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| contributions would otherwise cause his or her
retirement | 2 |
| annuity to exceed the maximum retirement annuity as specified | 3 |
| in
clause (1) of subsection (c) of Section 15-136. | 4 |
| (g) A participating employee may make contributions for the | 5 |
| purchase of
service credit under this Article. | 6 |
| (h) Notwithstanding anything in this Section to the | 7 |
| contrary, effective July 1, 2011, all participating employees | 8 |
| shall be required to contribute 7% of earnings, and no prior | 9 |
| contribution increases or other additional contributions | 10 |
| specified by this Section shall apply to any participating | 11 |
| employee for service on or after July 1, 2011. With respect to | 12 |
| participants who are not later entrants, the contribution rates | 13 |
| specified in this paragraph shall be replaced with the | 14 |
| contribution rates in effect under Sections 15-157(a) through | 15 |
| (g) if the benefit provisions added under Sections 15-400, | 16 |
| 15-405, 15-410, 15-415, or 15-420 are invalidated. | 17 |
| (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | 18 |
| eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | 19 |
| 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.) | 20 |
| (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152) | 21 |
| Sec. 16-152. Contributions by members. | 22 |
| (a) Each member shall make contributions for membership | 23 |
| service to this
System as follows: | 24 |
| (1) Effective July 1, 1998, contributions of 7.50% of | 25 |
| salary towards the
cost of the retirement annuity. Such |
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| contributions shall be deemed "normal
contributions". | 2 |
| (2) Effective July 1, 1969, contributions of 1/2 of 1% | 3 |
| of salary toward
the cost of the automatic annual increase | 4 |
| in retirement annuity provided
under Section 16-133.1. | 5 |
| (3) Effective July 24, 1959, contributions of 1% of | 6 |
| salary towards the
cost of survivor benefits. Such | 7 |
| contributions shall not be credited to
the individual | 8 |
| account of the member and shall not be subject to refund
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| except as provided under Section 16-143.2. | 10 |
| (4) Effective July 1, 2005, contributions of 0.40% of | 11 |
| salary toward the cost of the early retirement without | 12 |
| discount option provided under Section 16-133.2. This | 13 |
| contribution shall cease upon termination of the early | 14 |
| retirement without discount option as provided in Section | 15 |
| 16-176.
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| (5) Notwithstanding anything in this Section to the | 17 |
| contrary, effective July 1, 2011, all members shall be | 18 |
| required to contribute 7% of salary, and no prior | 19 |
| contribution increases or other additional contributions | 20 |
| specified by this Section shall apply to any member for | 21 |
| service on or after July 1, 2011. With respect to | 22 |
| participants who are not later entrants, the contribution | 23 |
| rates specified in this paragraph shall be replaced with | 24 |
| the contribution rates in effect under Sections | 25 |
| 16-152(a)(1) through (a)(4) if the benefit provisions | 26 |
| added under Sections 16-400, 16-405, 16-410, 16-415, or |
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| 16-420 are invalidated. | 2 |
| (b) The minimum required contribution for any year of | 3 |
| full-time
teaching service shall be $192. | 4 |
| (c) Contributions shall not be required of any annuitant | 5 |
| receiving
a retirement annuity who is given employment as | 6 |
| permitted under Section 16-118 or 16-150.1. | 7 |
| (d) A person who (i) was a member before July 1, 1998, (ii) | 8 |
| retires with
more than 34 years of creditable service, and | 9 |
| (iii) does not elect to qualify
for the augmented rate under | 10 |
| Section 16-129.1 shall be entitled, at the time
of retirement, | 11 |
| to receive a partial refund of contributions made under this
| 12 |
| Section for service occurring after the later of June 30, 1998 | 13 |
| or attainment
of 34 years of creditable service, in an amount | 14 |
| equal to 1.00% of the salary
upon which those contributions | 15 |
| were based. | 16 |
| (e) A member's contributions toward the cost of early | 17 |
| retirement without discount made under item (a)(4) of this | 18 |
| Section shall not be refunded if the member has elected early | 19 |
| retirement without discount under Section 16-133.2 and has | 20 |
| begun to receive a retirement annuity under this Article | 21 |
| calculated in accordance with that election. Otherwise, a | 22 |
| member's contributions toward the cost of early retirement | 23 |
| without discount made under item (a)(4) of this Section shall | 24 |
| be refunded according to whichever one of the following | 25 |
| circumstances occurs first: | 26 |
| (1) The contributions shall be refunded to the member, |
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| without interest, within 120 days after the member's | 2 |
| retirement annuity commences, if the member does not elect | 3 |
| early retirement without discount under Section 16-133.2. | 4 |
| (2) The contributions shall be included, without | 5 |
| interest, in any refund claimed by the member under Section | 6 |
| 16-151. | 7 |
| (3) The contributions shall be refunded to the member's | 8 |
| designated beneficiary (or if there is no beneficiary, to | 9 |
| the member's estate), without interest, if the member dies | 10 |
| without having begun to receive a retirement annuity under | 11 |
| this Article. | 12 |
| (4) The contributions shall be refunded to the member, | 13 |
| without interest, within 120 days after the early | 14 |
| retirement without discount option provided under Section | 15 |
| 16-133.2 is terminated under Section 16-176.
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| (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.) | 17 |
| (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133) | 18 |
| Sec. 18-133. Financing; employee contributions. | 19 |
| (a) Effective July 1, 1967, each participant is required to | 20 |
| contribute
7 1/2% of each payment of salary toward the | 21 |
| retirement annuity. Such
contributions shall continue during | 22 |
| the entire time the participant is in
service, with the | 23 |
| following exceptions: | 24 |
| (1) Contributions for the retirement annuity are not | 25 |
| required on salary
received after 18 years of service by |
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| persons who were participants before
January 2, 1954. | 2 |
| (2) A participant who continues to serve as a judge | 3 |
| after becoming
eligible to receive the maximum rate of | 4 |
| annuity may elect, through a written
direction filed with | 5 |
| the Board, to discontinue contributing to the System.
Any | 6 |
| such option elected by a judge shall be irrevocable unless | 7 |
| prior to
January 1, 2000, and while continuing to
serve as | 8 |
| judge, the judge (A) files with the Board a letter | 9 |
| cancelling the
direction to discontinue contributing to | 10 |
| the System and requesting that such
contributing resume, | 11 |
| and (B) pays into the System an amount equal to the total
| 12 |
| of the discontinued contributions plus interest thereon at | 13 |
| 5% per annum.
Service credits earned in any other | 14 |
| "participating system" as defined in
Article 20 of this | 15 |
| Code shall be considered for purposes of determining a
| 16 |
| judge's eligibility to discontinue contributions under | 17 |
| this subdivision
(a)(2). | 18 |
| (3) A participant who (i) has attained age 60, (ii) | 19 |
| continues to serve
as a judge after becoming eligible to | 20 |
| receive the maximum rate of annuity,
and (iii) has not | 21 |
| elected to discontinue contributing to the System under
| 22 |
| subdivision (a)(2) of this Section (or has revoked any such | 23 |
| election) may
elect, through a written direction filed with | 24 |
| the Board, to make contributions
to the System based only | 25 |
| on the amount of the increases in salary received by
the | 26 |
| judge on or after the date of the election, rather than the |
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| total salary
received. If a judge who is making | 2 |
| contributions to the System on the
effective date of this | 3 |
| amendatory Act of the 91st General Assembly makes an
| 4 |
| election to limit contributions under this subdivision | 5 |
| (a)(3) within 90 days
after that effective date, the | 6 |
| election shall be deemed to become
effective on that | 7 |
| effective date and the judge shall be entitled to receive a
| 8 |
| refund of any excess contributions paid to the System | 9 |
| during that 90-day
period; any other election under this | 10 |
| subdivision (a)(3) becomes effective
on the first of the | 11 |
| month following the date of the election. An election to
| 12 |
| limit contributions under this subdivision (a)(3) is | 13 |
| irrevocable. Service
credits earned in any other | 14 |
| participating system as defined in Article 20 of
this Code | 15 |
| shall be considered for purposes of determining a judge's | 16 |
| eligibility
to make an election under this subdivision | 17 |
| (a)(3). | 18 |
| (b) Beginning July 1, 1969, each participant is required to | 19 |
| contribute
1% of each payment of salary towards the automatic | 20 |
| increase in annuity
provided in Section 18-125.1. However, such | 21 |
| contributions need not be made
by any participant who has | 22 |
| elected prior to September 15, 1969, not to be
subject to the | 23 |
| automatic increase in annuity provisions. | 24 |
| (c) Effective July 13, 1953, each married participant | 25 |
| subject to the
survivor's annuity provisions is required to | 26 |
| contribute 2 1/2% of each
payment of salary, whether or not he |
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| or she is required to make any other
contributions under this | 2 |
| Section. Such contributions shall be made
concurrently with the | 3 |
| contributions made for annuity purposes. | 4 |
| (d) Notwithstanding anything in this Section to the | 5 |
| contrary, effective July 1, 2011, all participants shall be | 6 |
| required to contribute 7% of salary, and no prior contribution | 7 |
| increases or other additional contributions specified by this | 8 |
| Section shall apply to any participant for service on or after | 9 |
| July 1, 2011. With respect to participants who are not later | 10 |
| entrants, the contribution rates specified in this paragraph | 11 |
| shall be replaced with the contribution rates in effect under | 12 |
| Sections 18-133(a) through (c) if the benefit provisions added | 13 |
| under Sections 18-400, 18-405, 18-410, 18-415, or 18-420 are | 14 |
| invalidated. | 15 |
| (Source: P.A. 91-653, eff. 12-10-99.) | 16 |
| ARTICLE 2. | 17 |
| Section 2-5. The Illinois Pension Code is amended by adding | 18 |
| Sections 2-300, 2-305, 2-310, 2-315, 2-320, 2-325, 2-330, | 19 |
| 14-300, 14-305, 14-310, 14-315, 14-320, 14-325, 14-330, | 20 |
| 15-300, 15-305, 15-310, 15-315, 15-320, 15-325, 15-330, | 21 |
| 16-300, 16-305, 16-310, 16-315, 16-320, 16-325, 16-330, | 22 |
| 18-300, 18-305, 18-310, 18-315, 18-320, 18-325, and 18-330 as | 23 |
| follows: |
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| (40 ILCS 5/2-300 new) | 2 |
| Sec. 2-300. Provisions applicable to later entrants.
The | 3 |
| provisions of Sections 2-300, 2-305, 2-310, 2-315, 2-320, | 4 |
| 2-325, and 2-330 apply only to members who first become members | 5 |
| on or after July 1, 2011, who are referred to as "later | 6 |
| entrants". Notwithstanding anything in the foregoing | 7 |
| provisions of this Article to the contrary, the provisions of | 8 |
| Sections 2-300, 2-305, 2-310, 2-315, 2-320, 2-325, and 2-330 | 9 |
| shall control for later entrants. | 10 |
| (40 ILCS 5/2-305 new) | 11 |
| Sec. 2-305. Creditable service for later entrants.
| 12 |
| Creditable service for later entrants under this Article is | 13 |
| subject to the following conditions: | 14 |
| (a) The maximum amount of creditable service a member may | 15 |
| establish under this Article is 35 years. | 16 |
| (b) A member may only establish creditable service for his | 17 |
| or her service as a member under this Article. | 18 |
| (c) A member may not convert any unused sick leave or | 19 |
| vacation into creditable service under this Article. | 20 |
| (40 ILCS 5/2-310 new) | 21 |
| Sec. 2-310. Retirement annuity; conditions for | 22 |
| eligibility; later entrants.
Later entrants under this Article | 23 |
| shall be eligible to claim a retirement annuity under the | 24 |
| following conditions: |
|
|
|
09600SB2914sam001 |
- 17 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| (a) A member may claim a retirement annuity upon attainment | 2 |
| of the full (normal) retirement age as provided in the federal | 3 |
| Social Security Act with at least 8 years of service credit. | 4 |
| (b) A member may claim a reduced retirement annuity under | 5 |
| subsection (c) of Section 2-315 if he or she has reached an age | 6 |
| that is 5 years preceding the full (normal) retirement age as | 7 |
| provided in the federal Social Security Act, and has at least 8 | 8 |
| years of service. | 9 |
| (40 ILCS 5/2-315 new) | 10 |
| Sec. 2-315. Retirement life annuity; amount; later | 11 |
| entrants.
Retirement annuities for later entrants shall be | 12 |
| subject to the following conditions: | 13 |
| (a) With respect to later entrants, the following | 14 |
| limitations shall apply when calculating an annuity under this | 15 |
| Article: | 16 |
| (1) "Final average salary" means the monthly salary | 17 |
| obtained by dividing the total salary of a participant | 18 |
| during the period of: (A) the 96 consecutive months of | 19 |
| service in which the total salary was the highest within | 20 |
| the last 120 months of service, or (B) the total period of | 21 |
| service, if less than 96 months, by the number of months of | 22 |
| service in such period; provided that the monthly salary to | 23 |
| be considered in each of the last 12 months of the final | 24 |
| average salary period shall not exceed 125% of the highest | 25 |
| salary in any other month in the final average salary |
|
|
|
09600SB2914sam001 |
- 18 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| period that precedes such final 12-month period. In no | 2 |
| event shall the monthly salary used to determine final | 3 |
| average salary exceed the Social Security Contribution and | 4 |
| Benefit Base for the given month of service, or $10,000 | 5 |
| indexed for inflation by rules established by the system, | 6 |
| whichever is less. | 7 |
| (2) "Salary" means base salary paid to a member. | 8 |
| (b) The retirement life annuity shall be 2% of final | 9 |
| average salary for each year of service. | 10 |
| (c) For a member retiring after attaining an age that is 5 | 11 |
| years preceding the full (normal) retirement age as provided in | 12 |
| the federal Social Security Act, the retirement life annuity | 13 |
| shall be reduced by one-half of 1% for each month that the | 14 |
| member's retirement age is under the full (normal) retirement | 15 |
| age as provided in the federal Social Security Act. | 16 |
| (d) In no event shall a retirement life annuity exceed the | 17 |
| base salary of the Governor of the State of Illinois. | 18 |
| (40 ILCS 5/2-320 new) | 19 |
| Sec. 2-320. Alternative forms of annuities for later | 20 |
| entrants. A participant who is a later entrant may choose any | 21 |
| of the following types of annuities in lieu of receiving the | 22 |
| full annuity provided in Section 2-315: | 23 |
| (1) Joint and 50% survivor annuity. Under this form of | 24 |
| payment, the participant receives a reduced monthly | 25 |
| payment for his or her lifetime with a payment equal to 50% |
|
|
|
09600SB2914sam001 |
- 19 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| of the reduced amount payable to the participant paid to | 2 |
| the participant's designated beneficiary for the | 3 |
| beneficiary's lifetime if the beneficiary survives the | 4 |
| participant. | 5 |
| (2) Joint and 75% survivor annuity. Under this form of | 6 |
| payment, the participant receives a reduced monthly | 7 |
| payment for his or her lifetime with a payment equal to 75% | 8 |
| of the reduced amount payable to the participant paid to | 9 |
| the participant's designated beneficiary for the | 10 |
| beneficiary's lifetime if the beneficiary survives the | 11 |
| participant. | 12 |
| (3) Joint and 100% survivor annuity. Under this form of | 13 |
| payment, the participant receives a reduced monthly | 14 |
| payment for his or her lifetime with a payment equal to | 15 |
| 100% of the reduced amount payable to the participant paid | 16 |
| to the participant's designated beneficiary for the | 17 |
| beneficiary's lifetime if the beneficiary survives the | 18 |
| participant. | 19 |
| (4) Single life annuity with 60, 120, or 180 months of | 20 |
| guaranteed payments. Under this option, the participant | 21 |
| receives a reduced monthly payment for his or her lifetime. | 22 |
| If the participant dies before receiving at least the | 23 |
| number of guaranteed monthly payments, then the | 24 |
| participant's beneficiary or estate receives the remaining | 25 |
| guaranteed number of monthly payments. | 26 |
| The Board must determine the participant's optional form of |
|
|
|
09600SB2914sam001 |
- 20 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| annuity provided under this Section by taking into account the | 2 |
| appropriate actuarial assumptions, including without | 3 |
| limitation the participant's and beneficiary's age; applicable | 4 |
| mortality tables; and any other factors that the Board | 5 |
| determines to be relevant. For this purpose, the participant's | 6 |
| joint and survivor annuity should result in no significant | 7 |
| increase to the System's unfunded actuarial accrued liability | 8 |
| determined as of the most recent actuarial valuation, based on | 9 |
| the same assumptions and methods used to develop and report the | 10 |
| System's actuarial accrued liability and actuarial value of | 11 |
| assets under Statement No. 25 of Governmental Accounting | 12 |
| Standards Board or any subsequent applicable Statement. | 13 |
| (40 ILCS 5/2-325 new) | 14 |
| Sec. 2-325. Automatic annual increases for later entrants. | 15 |
| Notwithstanding any other provision of this Article, a person | 16 |
| receiving a retirement or survivor annuity under Sections 2-315 | 17 |
| or 2-320 shall, on the first anniversary of retirement, but not | 18 |
| before attaining the full (normal) retirement age as provided | 19 |
| in the federal Social Security Act, and annually thereafter, | 20 |
| have his or her annuity increased by the lesser of (1) 3% or | 21 |
| (2) one-half of the percentage increase, if any, in the | 22 |
| Consumer Price Index for All Urban Consumers measured from the | 23 |
| preceding January 1 to the January 1 of the year during which | 24 |
| the increase is being granted. The increase for each year shall | 25 |
| be applied to the amount of the recipient's originally granted |
|
|
|
09600SB2914sam001 |
- 21 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| annuity. | 2 |
| (40 ILCS 5/2-330 new) | 3 |
| Sec. 2-330. Refunds; later entrants.
A participant who is a | 4 |
| later entrant and who ceases to be a member, other than an | 5 |
| annuitant, shall, upon written request, receive a refund of his | 6 |
| or her total contributions. Upon re-entry into service as a | 7 |
| member, a former member who was a later entrant may reestablish | 8 |
| any creditable service forfeited by acceptance of a refund by | 9 |
| paying to the System the full amount refunded, plus interest at | 10 |
| the actuarially assumed rate, not compounded, from the date of | 11 |
| payment of the refund to the date of repayment. | 12 |
| (40 ILCS 5/14-300 new) | 13 |
| Sec. 14-300. Provisions applicable to later entrants.
The | 14 |
| provisions of Sections 14-300, 14-305, 14-310, 14-315, 14-320, | 15 |
| 14-325, and 14-330 apply only to employees who first become | 16 |
| employees on or after July 1, 2011, who are referred to as | 17 |
| "later entrants". Notwithstanding anything in the foregoing | 18 |
| provisions of this Article to the contrary, the provisions of | 19 |
| Sections 14-300, 14-305, 14-310, 14-315, 14-320, 14-325, and | 20 |
| 14-330 shall control for later entrants. | 21 |
| (40 ILCS 5/14-305 new) | 22 |
| Sec. 14-305. Creditable service for later entrants.
| 23 |
| Creditable service for later entrants under this Article is |
|
|
|
09600SB2914sam001 |
- 22 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| subject to the following conditions: | 2 |
| (a) The maximum amount of creditable service a member may | 3 |
| establish under this Article is 35 years. | 4 |
| (b) A member may only establish creditable service for his | 5 |
| or her membership service, as defined in Section 14-103.13. | 6 |
| (c) A member may not convert any unused sick leave or | 7 |
| vacation into creditable service under this Article. | 8 |
| (40 ILCS 5/14-310 new) | 9 |
| Sec. 14-310. Retirement annuity; conditions for | 10 |
| eligibility; later entrants.
Later entrants under this Article | 11 |
| shall be eligible to claim a retirement annuity under the | 12 |
| following conditions: | 13 |
| (a) A member may claim a retirement annuity upon attainment | 14 |
| of the full (normal) retirement age as provided in the federal | 15 |
| Social Security Act with at least 8 years of service credit. | 16 |
| (b) A member may claim a reduced retirement annuity under | 17 |
| subsection (c) of Section 14-315 if he or she has reached an | 18 |
| age that is 5 years preceding the full (normal) retirement age | 19 |
| as provided in the federal Social Security Act, and has at | 20 |
| least 8 years of service. | 21 |
| (40 ILCS 5/14-315 new) | 22 |
| Sec. 14-315. Retirement life annuity; amount; later | 23 |
| entrants. | 24 |
| (a) With respect to later entrants, the following |
|
|
|
09600SB2914sam001 |
- 23 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| limitations shall apply when calculating an annuity under this | 2 |
| Article: | 3 |
| (1) "Final average compensation" means the monthly | 4 |
| compensation obtained by dividing the total compensation | 5 |
| of an employee during the period of: (A) the 96 consecutive | 6 |
| months of service in which the total compensation was the | 7 |
| highest within the last 120 months of service, or (B) the | 8 |
| total period of service, if less than 96 months, by the | 9 |
| number of months of service in such period; provided that | 10 |
| the monthly compensation to be considered in each of the | 11 |
| last 12 months of the final average compensation period | 12 |
| shall not exceed 125% of the highest compensation in any | 13 |
| other month in the final average compensation period that | 14 |
| precedes such final 12-month period. In no event shall the | 15 |
| monthly compensation used to determine final average | 16 |
| compensation exceed the Social Security Contribution and | 17 |
| Benefit Base for the given month of service, or $10,000 | 18 |
| indexed for inflation by rules established by the system, | 19 |
| whichever is less. | 20 |
| (2) "Compensation" means a member's base compensation. | 21 |
| (b) The retirement life annuity shall be (1) 1.5% of final | 22 |
| average compensation for each year of service for covered | 23 |
| employees or (2) 2% of final average compensation for each year | 24 |
| of service for noncovered employees. | 25 |
| (c) For a member retiring after attaining an age that is 5 | 26 |
| years preceding the full (normal) retirement age as provided in |
|
|
|
09600SB2914sam001 |
- 24 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| the federal Social Security Act, the retirement life annuity | 2 |
| shall be reduced by one-half of 1% for each month that the | 3 |
| member's retirement age is under the full (normal) retirement | 4 |
| age as provided in the federal Social Security Act. | 5 |
| (d) In no event shall a retirement life annuity exceed the | 6 |
| base salary of the Governor of the State of Illinois. | 7 |
| (40 ILCS 5/14-320 new) | 8 |
| Sec. 14-320. Alternative forms of annuities for later | 9 |
| entrants. A member who is a later entrant may choose any of the | 10 |
| following types of annuities in lieu of receiving the full | 11 |
| annuity provided in Section 14-315: | 12 |
| (1) Joint and 50% survivor annuity. Under this form of | 13 |
| payment, the member receives a reduced monthly payment for | 14 |
| his or her lifetime with a payment equal to 50% of the | 15 |
| reduced amount payable to the member paid to the member's | 16 |
| designated beneficiary for the beneficiary's lifetime if | 17 |
| the beneficiary survives the member. | 18 |
| (2) Joint and 75% survivor annuity. Under this form of | 19 |
| payment, the member receives a reduced monthly payment for | 20 |
| his or her lifetime with a payment equal to 75% of the | 21 |
| reduced amount payable to the member paid to the member's | 22 |
| designated beneficiary for the beneficiary's lifetime if | 23 |
| the beneficiary survives the member. | 24 |
| (3) Joint and 100% survivor annuity. Under this form of | 25 |
| payment, the member receives a reduced monthly payment for |
|
|
|
09600SB2914sam001 |
- 25 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| his or her lifetime with a payment equal to 100% of the | 2 |
| reduced amount payable to the member paid to the member's | 3 |
| designated beneficiary for the beneficiary's lifetime if | 4 |
| the beneficiary survives the member. | 5 |
| (4) Single life annuity with 60, 120, or 180 months of | 6 |
| guaranteed payments. Under this option, the member | 7 |
| receives a reduced monthly payment for his or her lifetime. | 8 |
| If the member dies before receiving at least the number of | 9 |
| guaranteed monthly payments, then the member's beneficiary | 10 |
| or estate receives the remaining guaranteed number of | 11 |
| monthly payments. | 12 |
| The Board must determine the participant's optional form of | 13 |
| annuity provided under this Section by taking into account the | 14 |
| appropriate actuarial assumptions, including without | 15 |
| limitation the participant's and beneficiary's age; applicable | 16 |
| mortality tables; and any other factors that the Board | 17 |
| determines to be relevant. For this purpose, the participant's | 18 |
| joint and survivor annuity should result in no significant | 19 |
| increase to the System's unfunded actuarial accrued liability | 20 |
| determined as of the most recent actuarial valuation, based on | 21 |
| the same assumptions and methods used to develop and report the | 22 |
| System's actuarial accrued liability and actuarial value of | 23 |
| assets under Statement No. 25 of Governmental Accounting | 24 |
| Standards Board or any subsequent applicable Statement. | 25 |
| (40 ILCS 5/14-325 new) |
|
|
|
09600SB2914sam001 |
- 26 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| Sec. 14-325. Automatic annual increases for later | 2 |
| entrants.
Notwithstanding any other provision of this Article, | 3 |
| a person receiving a retirement or survivor annuity under | 4 |
| Sections 14-315 or 14-320 shall, on the first anniversary of | 5 |
| retirement, but not before attaining the full (normal) | 6 |
| retirement age as provided in the federal Social Security Act, | 7 |
| and annually thereafter, have his or her annuity increased by | 8 |
| the lesser of (1) 3% or (2) one-half of the percentage | 9 |
| increase, if any, in the Consumer Price Index for All Urban | 10 |
| Consumers measured from the preceding January 1 to the January | 11 |
| 1 of the year during which the increase is being granted. The | 12 |
| increase for each year shall be applied to the amount of the | 13 |
| recipient's originally granted annuity. | 14 |
| (40 ILCS 5/14-330 new) | 15 |
| Sec. 14-330. Refunds; later entrants. An employee who is a | 16 |
| later entrant and who ceases to be a member, other than an | 17 |
| annuitant, shall, upon written request, receive a refund of his | 18 |
| or her total contributions. Upon re-entry into service as a | 19 |
| member, a former member who was a later entrant may reestablish | 20 |
| any creditable service forfeited by acceptance of a refund by | 21 |
| paying to the System the full amount refunded, plus interest at | 22 |
| actuarially assumed rate, not compounded, from the date of | 23 |
| payment of the refund to the date of repayment. | 24 |
| (40 ILCS 5/15-300 new) |
|
|
|
09600SB2914sam001 |
- 27 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| Sec. 15-300. Provisions applicable to later entrants.
The | 2 |
| provisions of Sections 15-300, 15-305, 15-310, 15-315, 15-320, | 3 |
| 15-325, and 15-330 apply only to employees who first become | 4 |
| employees on or after July 1, 2011, who are referred to as | 5 |
| "later entrants". Notwithstanding anything in the foregoing | 6 |
| provisions of this Article to the contrary, the provisions of | 7 |
| Sections 15-300, 15-305, 15-310, 15-315, 15-320, 15-325, and | 8 |
| 15-330 shall control for later entrants. | 9 |
| (40 ILCS 5/15-305 new) | 10 |
| Sec. 15-305. Creditable service for later entrants.
| 11 |
| Creditable service for later entrants under this Article is | 12 |
| subject to the following conditions: | 13 |
| (a) The maximum amount of creditable service a member may | 14 |
| establish under this Article is 35 years. | 15 |
| (b) A member may only establish creditable service for his | 16 |
| or her service for employment with an employer, as defined in | 17 |
| Section 15-106. | 18 |
| (c) A member may not convert any unused sick leave or | 19 |
| vacation into creditable service under this Article. | 20 |
| (40 ILCS 5/15-310 new) | 21 |
| Sec. 15-310. Retirement annuity; conditions for | 22 |
| eligibility; later entrants.
Later entrants under this Article | 23 |
| shall be eligible to claim a retirement annuity under the | 24 |
| following conditions: |
|
|
|
09600SB2914sam001 |
- 28 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| (a) A participant may claim a retirement annuity upon | 2 |
| attainment of the full (normal) retirement age as provided in | 3 |
| the federal Social Security Act with at least 8 years of | 4 |
| service credit. | 5 |
| (b) A participant may claim a reduced retirement annuity | 6 |
| under subsection (c) of Section 15-315 if he or she has reached | 7 |
| an age that is 5 years preceding the full (normal) retirement | 8 |
| age as provided in the federal Social Security Act, and has at | 9 |
| least 8 years of service. | 10 |
| (40 ILCS 5/15-315 new) | 11 |
| Sec. 15-315. Retirement life annuity; amount; later | 12 |
| entrants. | 13 |
| (a) With respect to later entrants, the following | 14 |
| limitations shall apply when calculating an annuity under this | 15 |
| Article: | 16 |
| (1) "Final rate of earnings" means the monthly earnings | 17 |
| obtained by dividing the total earnings of an employee | 18 |
| during the period of: (A) the 96 consecutive months of | 19 |
| service in which the total earnings was the highest within | 20 |
| the last 120 months of service, or (B) the total period of | 21 |
| service, if less than 96 months, by the number of months of | 22 |
| service in such period; provided that the monthly earnings | 23 |
| to be considered in each of the last 12 months of the final | 24 |
| rate of earnings period shall not exceed 125% of the | 25 |
| highest earnings in any other month in the final rate of |
|
|
|
09600SB2914sam001 |
- 29 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| earnings period that precedes such final 12-month period. | 2 |
| In no event shall the monthly compensation used to | 3 |
| determine final rate of earnings exceed the Social Security | 4 |
| Contribution and Benefit Base for the given month of | 5 |
| service, or $10,000 indexed for inflation by rules | 6 |
| established by the system, whichever is less. | 7 |
| (2) "Compensation" means an employee's base | 8 |
| compensation. | 9 |
| (b) The retirement life annuity shall be 2% of the final | 10 |
| rate of earnings for each year of service. | 11 |
| (c) For an employee retiring after attaining an age that is | 12 |
| 5 years preceding the full (normal) retirement age as provided | 13 |
| in the federal Social Security Act, the retirement life annuity | 14 |
| shall be reduced by one-half of 1% for each month that the | 15 |
| employee's retirement age is under the full (normal) retirement | 16 |
| age as provided in the federal Social Security Act. | 17 |
| (d) In no event shall a retirement life annuity exceed the | 18 |
| base salary of the Governor of the State of Illinois. | 19 |
| (40 ILCS 5/15-320 new) | 20 |
| Sec. 15-320. Alternative forms of annuities for later | 21 |
| entrants. | 22 |
| (a) A participant who is a later entrant may choose any of | 23 |
| the following types of annuities in lieu of receiving the full | 24 |
| annuity provided in Section 15-315: | 25 |
| (1) Joint and 50% survivor annuity. Under this form of |
|
|
|
09600SB2914sam001 |
- 30 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| payment, the participant receives a reduced monthly | 2 |
| payment for his or her lifetime with a payment equal to 50% | 3 |
| of the reduced amount payable to the participant paid to | 4 |
| the participant's designated beneficiary for the | 5 |
| beneficiary's lifetime if the beneficiary survives the | 6 |
| participant. | 7 |
| (2) Joint and 75% survivor annuity. Under this form of | 8 |
| payment, the participant receives a reduced monthly | 9 |
| payment for his or her lifetime with a payment equal to 75% | 10 |
| of the reduced amount payable to the participant paid to | 11 |
| the participant's designated beneficiary for the | 12 |
| beneficiary's lifetime if the beneficiary survives the | 13 |
| participant. | 14 |
| (3) Joint and 100% survivor annuity. Under this form of | 15 |
| payment, the participant receives a reduced monthly | 16 |
| payment for his or her lifetime with a payment equal to | 17 |
| 100% of the reduced amount payable to the participant paid | 18 |
| to the participant's designated beneficiary for the | 19 |
| beneficiary's lifetime if the beneficiary survives the | 20 |
| participant. | 21 |
| (4) Single life annuity with 60, 120, or 180 months of | 22 |
| guaranteed payments. Under this option, the participant | 23 |
| receives a reduced monthly payment for his or her lifetime. | 24 |
| If the participant dies before receiving at least the | 25 |
| number of guaranteed monthly payments, then the participant's | 26 |
| beneficiary or estate receives the remaining guaranteed number |
|
|
|
09600SB2914sam001 |
- 31 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| of monthly payments. | 2 |
| (b) In lieu of the annuities under Section 15-315 and | 3 |
| subsection (a) of this Section, a participant may choose the | 4 |
| portable benefit package under Section 15-136.4 or the | 5 |
| self-managed plan under Section 15-158.2. | 6 |
| (c) The Board must determine the participant's optional | 7 |
| form of annuity provided under this Section by taking into | 8 |
| account the appropriate actuarial assumptions, including | 9 |
| without limitation the participant's and beneficiary's age; | 10 |
| applicable mortality tables; and any other factors that the | 11 |
| Board determines to be relevant. For this purpose, the | 12 |
| participant's joint and survivor annuity should result in no | 13 |
| significant increase to the System's unfunded actuarial | 14 |
| accrued liability determined as of the most recent actuarial | 15 |
| valuation, based on the same assumptions and methods used to | 16 |
| develop and report the System's actuarial accrued liability and | 17 |
| actuarial value of assets under Statement No. 25 of | 18 |
| Governmental Accounting Standards Board or any subsequent | 19 |
| applicable Statement. | 20 |
| (40 ILCS 5/15-325 new) | 21 |
| Sec. 15-325. Automatic annual increases for later | 22 |
| entrants. Notwithstanding any other provision of this Article, | 23 |
| a person receiving a retirement or survivor annuity under | 24 |
| Sections 15-315 or 15-320 shall, on the first anniversary of | 25 |
| retirement, but not before attaining the full (normal) |
|
|
|
09600SB2914sam001 |
- 32 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| retirement age as provided in the federal Social Security Act, | 2 |
| and annually thereafter, have his or her annuity increased by | 3 |
| the lesser of (1) 3% or (2) one-half of the percentage | 4 |
| increase, if any, in the Consumer Price Index for All Urban | 5 |
| Consumers measured from the preceding January 1 to the January | 6 |
| 1 of the year during which the increase is being granted. The | 7 |
| increase for each year shall be applied to the amount of the | 8 |
| recipient's originally granted annuity. | 9 |
| (40 ILCS 5/15-330 new) | 10 |
| Sec. 15-330. Refunds; later entrants. An employee who is a | 11 |
| later entrant and who ceases to be a participant, other than an | 12 |
| annuitant, shall, upon written request, receive a refund of his | 13 |
| or her total contributions. Upon re-entry into service as an | 14 |
| employee, a former participant who was a later entrant may | 15 |
| reestablish any creditable service forfeited by acceptance of a | 16 |
| refund by paying to the System the full amount refunded, plus | 17 |
| interest at the actuarially assumed rate, not compounded, from | 18 |
| the date of payment of the refund to the date of repayment. | 19 |
| (40 ILCS 5/16-300 new) | 20 |
| Sec. 16-300. Provisions applicable to later entrants.
The | 21 |
| provisions of Sections 16-300, 16-305, 16-310, 16-315, 16-320, | 22 |
| 16-325, and 16-330 apply only to teachers who first become | 23 |
| teachers on or after July 1, 2011, who are referred to as | 24 |
| "later entrants". Notwithstanding anything in the foregoing |
|
|
|
09600SB2914sam001 |
- 33 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| provisions of this Article to the contrary, the provisions of | 2 |
| Sections 16-300, 16-305, 16-310, 16-315, 16-320, 16-325, and | 3 |
| 16-330 shall control for later entrants. | 4 |
| (40 ILCS 5/16-305 new) | 5 |
| Sec. 16-305. Creditable service for later entrants.
| 6 |
| Creditable service for later entrants under this Article is | 7 |
| subject to the following conditions: | 8 |
| (a) The maximum amount of creditable service a member may | 9 |
| establish under this Article is 35 years. | 10 |
| (b) A member may only establish creditable service for his | 11 |
| or her service for employment as a teacher, as defined in | 12 |
| Section 16-106. | 13 |
| (c) A member may not convert any unused sick leave or | 14 |
| vacation into creditable service under this Article. | 15 |
| (40 ILCS 5/16-310 new) | 16 |
| Sec. 16-310. Later entrants under this Article shall be | 17 |
| eligible to claim a retirement annuity under the following | 18 |
| conditions: | 19 |
| (a) A participant may claim a retirement annuity upon | 20 |
| attainment of the full (normal) retirement age as provided in | 21 |
| the federal Social Security Act with at least 8 years of | 22 |
| service credit. | 23 |
| (b) A participant may claim a reduced retirement annuity | 24 |
| under subsection (c) of Section 16-315 if he or she has reached |
|
|
|
09600SB2914sam001 |
- 34 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| an age that is 5 years preceding the full (normal) retirement | 2 |
| age as provided in the federal Social Security Act, and has at | 3 |
| least 8 years of service. | 4 |
| (40 ILCS 5/16-315 new) | 5 |
| Sec. 16-315. Retirement life annuity; amount; later | 6 |
| entrants.
Retirement annuities for later entrants shall be | 7 |
| subject to the following conditions: | 8 |
| (a) With respect to later entrants, the following | 9 |
| limitations shall apply when calculating an annuity under this | 10 |
| Article: | 11 |
| (1) "Final average salary" means the monthly salary | 12 |
| obtained by dividing the total salary of a member during | 13 |
| the period of: (A) the 96 consecutive months of service in | 14 |
| which the total salary was the highest within the last 120 | 15 |
| months of service, or (B) the total period of service, if | 16 |
| less than 96 months, by the number of months of service in | 17 |
| such period; provided that the monthly salary to be | 18 |
| considered in each of the last 12 months of the final | 19 |
| average salary period shall not exceed 125% of the highest | 20 |
| salary in any other month in the final average salary | 21 |
| period that precedes such final 12-month period. In no | 22 |
| event shall the monthly salary used to determine final | 23 |
| average salary exceed the Social Security Contribution and | 24 |
| Benefit Base for the given month of service, or $10,000 | 25 |
| indexed for inflation by rules established by the system, |
|
|
|
09600SB2914sam001 |
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| 1 |
| whichever is less. | 2 |
| (2) "Salary" means base salary paid to a member. | 3 |
| (b) The retirement life annuity shall be 2% of final | 4 |
| average salary for each year of service. | 5 |
| (c) For a member retiring after attaining an age that is 5 | 6 |
| years preceding the full (normal) retirement age as provided in | 7 |
| the federal Social Security Act, the retirement life annuity | 8 |
| shall be reduced by one-half of 1% for each month that the | 9 |
| member's retirement age is under the full (normal) retirement | 10 |
| age as provided in the federal Social Security Act. | 11 |
| (d) In no event shall a retirement life annuity exceed the | 12 |
| base salary of the Governor of the State of Illinois. | 13 |
| (40 ILCS 5/16-320 new) | 14 |
| Sec. 16-320. Alternative forms of annuities for later | 15 |
| entrants. A member who is a later entrant may choose any of the | 16 |
| following types of annuities in lieu of receiving the full | 17 |
| annuity provided in Section 16-315: | 18 |
| (1) Joint and 50% survivor annuity. Under this form of | 19 |
| payment, the member receives a reduced monthly payment for | 20 |
| his or her lifetime with a payment equal to 50% of the | 21 |
| reduced amount payable to the member paid to the member's | 22 |
| designated beneficiary for the beneficiary's lifetime if | 23 |
| the beneficiary survives the member. | 24 |
| (2) Joint and 75% survivor annuity. Under this form of | 25 |
| payment, the member receives a reduced monthly payment for |
|
|
|
09600SB2914sam001 |
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| 1 |
| his or her lifetime with a payment equal to 75% of the | 2 |
| reduced amount payable to the member paid to the member's | 3 |
| designated beneficiary for the beneficiary's lifetime if | 4 |
| the beneficiary survives the member. | 5 |
| (3) Joint and 100% survivor annuity. Under this form of | 6 |
| payment, the member receives a reduced monthly payment for | 7 |
| his or her lifetime with a payment equal to 100% of the | 8 |
| reduced amount payable to the member paid to the member's | 9 |
| designated beneficiary for the beneficiary's lifetime if | 10 |
| the beneficiary survives the member. | 11 |
| (4) Single life annuity with 60, 120, or 180 months of | 12 |
| guaranteed payments. Under this option, the member | 13 |
| receives a reduced monthly payment for his or her lifetime. | 14 |
| If the member dies before receiving at least the number of | 15 |
| guaranteed monthly payments, then the member's beneficiary or | 16 |
| estate receives the remaining guaranteed number of monthly | 17 |
| payments. | 18 |
| The Board must determine the participant's optional form of | 19 |
| annuity provided under this Section by taking into account the | 20 |
| appropriate actuarial assumptions, including without | 21 |
| limitation the participant's and beneficiary's age; applicable | 22 |
| mortality tables; and any other factors that the Board | 23 |
| determines to be relevant. For this purpose, the participant's | 24 |
| joint and survivor annuity should result in no significant | 25 |
| increase to the System's unfunded actuarial accrued liability | 26 |
| determined as of the most recent actuarial valuation, based on |
|
|
|
09600SB2914sam001 |
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| 1 |
| the same assumptions and methods used to develop and report the | 2 |
| System's actuarial accrued liability and actuarial value of | 3 |
| assets under Statement No. 25 of Governmental Accounting | 4 |
| Standards Board or any subsequent applicable Statement. | 5 |
| (40 ILCS 5/16-325 new) | 6 |
| Sec. 16-325. Automatic annual increases for later | 7 |
| entrants.
Notwithstanding any other provision of this Article, | 8 |
| a person receiving a retirement or survivor annuity under | 9 |
| Sections 16-315 or 16-320 shall, on the first anniversary of | 10 |
| retirement, but not before attaining the full (normal) | 11 |
| retirement age as provided in the federal Social Security Act, | 12 |
| and annually thereafter, have his or her annuity increased by | 13 |
| the lesser of (1) 3% or (2) one-half of the percentage | 14 |
| increase, if any, in the Consumer Price Index for All Urban | 15 |
| Consumers measured from the preceding January 1 to the January | 16 |
| 1 of the year during which the increase is being granted. The | 17 |
| increase for each year shall be applied to the amount of the | 18 |
| recipient's originally granted annuity. | 19 |
| (40 ILCS 5/16-330 new) | 20 |
| Sec. 16-330. Refunds; later entrants. A teacher who is a | 21 |
| later entrant and who ceases to be a member, other than an | 22 |
| annuitant, shall, upon written request, receive a refund of his | 23 |
| or her total contributions. Upon re-entry into service as a | 24 |
| teacher, a former member who was a later entrant may |
|
|
|
09600SB2914sam001 |
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| 1 |
| reestablish any creditable service forfeited by acceptance of a | 2 |
| refund by paying to the System the full amount refunded, plus | 3 |
| interest at the actuarially assumed rate, not compounded, from | 4 |
| the date of payment of the refund to the date of repayment. | 5 |
| (40 ILCS 5/18-300 new) | 6 |
| Sec. 18-300. Provisions applicable to later entrants.
The | 7 |
| provisions of Sections 18-300, 18-305, 18-310, 18-315, 18-320, | 8 |
| 18-325, and 18-330 apply only to judges who first become judges | 9 |
| on or after July 1, 2011, who are referred to as "later | 10 |
| entrants". Notwithstanding anything in the foregoing | 11 |
| provisions of this Article to the contrary, the provisions of | 12 |
| Sections 18-300, 18-305, 18-310, 18-315, 18-320, 18-325, and | 13 |
| 18-330 shall control for later entrants. | 14 |
| (40 ILCS 5/18-305 new) | 15 |
| Sec. 18-305. Creditable service for later entrants.
| 16 |
| Creditable service for later entrants under this Article is | 17 |
| subject to the following conditions: | 18 |
| (a) The maximum amount of creditable service a member may | 19 |
| establish under this Article is 35 years. | 20 |
| (b) A participant may only establish creditable service for | 21 |
| his or her service for employment as a judge, as defined in | 22 |
| Section 18-112. | 23 |
| (c) A member may not convert any unused sick leave or | 24 |
| vacation into creditable service under this Article. |
|
|
|
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| 1 |
| (40 ILCS 5/18-310 new) | 2 |
| Sec. 18-310. Retirement annuity; conditions for | 3 |
| eligibility; later entrants.
Later entrants under this Article | 4 |
| shall be eligible to claim a retirement annuity under the | 5 |
| following conditions: | 6 |
| (a) A participant may claim a retirement annuity upon | 7 |
| attainment of the full (normal) retirement age as provided in | 8 |
| the federal Social Security Act with at least 8 years of | 9 |
| service credit. | 10 |
| (b) A participant may claim a reduced retirement annuity | 11 |
| under subsection (c) of Section 18-315 if he or she has reached | 12 |
| an age that is 5 years preceding the full (normal) retirement | 13 |
| age as provided in the federal Social Security Act, and has at | 14 |
| least 8 years of service. | 15 |
| (40 ILCS 5/18-315 new) | 16 |
| Sec. 18-315. Retirement life annuity; amount; later | 17 |
| entrants.
Retirement annuities for later entrants shall be | 18 |
| subject to the following conditions: | 19 |
| (a) With respect to later entrants, the following | 20 |
| limitations shall apply when calculating an annuity under this | 21 |
| Article: | 22 |
| (1) "Final average salary" means the monthly salary | 23 |
| obtained by dividing the total salary of a participant | 24 |
| during the period of: (A) the 96 consecutive months of |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| service in which the total salary was the highest within | 2 |
| the last 120 months of service, or (B) the total period of | 3 |
| service, if less than 96 months, by the number of months of | 4 |
| service in such period; provided that the monthly salary to | 5 |
| be considered in each of the last 12 months of the final | 6 |
| average salary period shall not exceed 125% of the highest | 7 |
| salary in any other month in the final average salary | 8 |
| period that precedes such final 12-month period. In no | 9 |
| event shall the monthly salary used to determine final | 10 |
| average salary exceed the Social Security Contribution and | 11 |
| Benefit Base for the given month of service, or $10,000 | 12 |
| indexed for inflation by rules established by the system, | 13 |
| whichever is less. | 14 |
| (2) "Salary" means base salary paid to a participant. | 15 |
| (b) The retirement life annuity shall be 2% of final | 16 |
| average salary for each year of service. | 17 |
| (c) For a participant retiring after attaining an age that | 18 |
| is 5 years preceding the full (normal) retirement age as | 19 |
| provided in the federal Social Security Act, the retirement | 20 |
| life annuity shall be reduced by one-half of 1% for each month | 21 |
| that the participant's retirement age is under the full | 22 |
| (normal) retirement age as provided in the federal Social | 23 |
| Security Act. | 24 |
| (d) In no event shall a retirement life annuity exceed the | 25 |
| base salary of the Governor of the State of Illinois. |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| (40 ILCS 5/18-320 new) | 2 |
| Sec. 18-320. Alternative forms of annuities for later | 3 |
| entrants. | 4 |
| A participant who is a later entrant may choose any of the | 5 |
| following types of annuities in lieu of receiving the full | 6 |
| annuity provided in Section 18-315: | 7 |
| (1) Joint and 50% survivor annuity. Under this form of | 8 |
| payment, the participant receives a reduced monthly | 9 |
| payment for his or her lifetime with a payment equal to 50% | 10 |
| of the reduced amount payable to the participant paid to | 11 |
| the participant's designated beneficiary for the | 12 |
| beneficiary's lifetime if the beneficiary survives the | 13 |
| participant. | 14 |
| (2) Joint and 75% survivor annuity. Under this form of | 15 |
| payment, the participant receives a reduced monthly | 16 |
| payment for his or her lifetime with a payment equal to 75% | 17 |
| of the reduced amount payable to the participant paid to | 18 |
| the participant's designated beneficiary for the | 19 |
| beneficiary's lifetime if the beneficiary survives the | 20 |
| participant. | 21 |
| (3) Joint and 100% survivor annuity. Under this form of | 22 |
| payment, the participant receives a reduced monthly | 23 |
| payment for his or her lifetime with a payment equal to | 24 |
| 100% of the reduced amount payable to the participant paid | 25 |
| to the participant's designated beneficiary for the | 26 |
| beneficiary's lifetime if the beneficiary survives the |
|
|
|
09600SB2914sam001 |
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| 1 |
| participant. | 2 |
| (4) Single life annuity with 60, 120, or 180 months of | 3 |
| guaranteed payments. Under this option, the participant | 4 |
| receives a reduced monthly payment for his or her lifetime. | 5 |
| If the participant dies before receiving at least the | 6 |
| number of guaranteed monthly payments, then the participant's | 7 |
| beneficiary or estate receives the remaining guaranteed number | 8 |
| of monthly payments. | 9 |
| The Board must determine the participant's optional form of | 10 |
| annuity provided under this Section by taking into account the | 11 |
| appropriate actuarial assumptions, including without | 12 |
| limitation the participant's and beneficiary's age; applicable | 13 |
| mortality tables; and any other factors that the Board | 14 |
| determines to be relevant. For this purpose, the participant's | 15 |
| joint and survivor annuity should result in no significant | 16 |
| increase to the System's unfunded actuarial accrued liability | 17 |
| determined as of the most recent actuarial valuation, based on | 18 |
| the same assumptions and methods used to develop and report the | 19 |
| System's actuarial accrued liability and actuarial value of | 20 |
| assets under Statement No. 25 of Governmental Accounting | 21 |
| Standards Board or any subsequent applicable Statement. | 22 |
| (40 ILCS 5/18-325 new) | 23 |
| Sec. 18-325. Automatic annual increases for later | 24 |
| entrants.
Notwithstanding any other provision of this Article, | 25 |
| a person receiving a retirement or survivor annuity under |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| Sections 18-315 or 18-320 shall, on the first anniversary of | 2 |
| retirement, but not before attaining the full (normal) | 3 |
| retirement age as provided in the federal Social Security Act, | 4 |
| and annually thereafter, have his or her annuity increased by | 5 |
| the lesser of (1) 3% or (2) one-half of the percentage | 6 |
| increase, if any, in the Consumer Price Index for All Urban | 7 |
| Consumers measured from the preceding January 1 to the January | 8 |
| 1 of the year during which the increase is being granted. The | 9 |
| increase for each year shall be applied to the amount of the | 10 |
| recipient's originally granted annuity. | 11 |
| (40 ILCS 5/18-330 new) | 12 |
| Sec. 18-330. Refunds; later entrants.
A judge who was a | 13 |
| later entrant and who ceases to be a participant, other than an | 14 |
| annuitant, shall, upon written request, receive a refund of his | 15 |
| or her total contributions. Upon re-entry into service as a | 16 |
| judge, a former participant who was a later entrant may | 17 |
| reestablish any creditable service forfeited by acceptance of a | 18 |
| refund by paying to the System the full amount refunded, plus | 19 |
| interest at the actuarially assumed rate, not compounded, from | 20 |
| the date of payment of the refund to the date of repayment. | 21 |
| ARTICLE 3. | 22 |
| Section 3-1. Legislative intent. Article XIII, Section 5 of | 23 |
| the 1970 Illinois State Constitution provides public employees |
|
|
|
09600SB2914sam001 |
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| 1 |
| a right to retain their contractual rights to pension benefits | 2 |
| that they have already earned. The goal and intent of the | 3 |
| following provisions is to preserve the accrued benefits of | 4 |
| members in the five State pension systems, while making changes | 5 |
| on a prospective basis to protect the funded status of each | 6 |
| State pension system, thereby preserving each system's ability | 7 |
| to provide benefits for all members. | 8 |
| Section 3-5. The Illinois Pension Code is amended by adding | 9 |
| Sections 2-400, 2-405, 2-410, 2-415, 2-420, 14-400, 14-405, | 10 |
| 14-410, 14-415, 14-420, 15-400, 15-405, 15-410, 15-415, | 11 |
| 15-420, 16-400, 16-405, 16-410, 16-415, 16-420, 18-400, | 12 |
| 18-405, 18-410, 18-415, and 18-420 as follows: | 13 |
| (40 ILCS 5/2-400 new) | 14 |
| Sec. 2-400. Provisions applicable to benefit accruals on or | 15 |
| after July 1, 2011. Notwithstanding anything in the foregoing | 16 |
| provisions of this Article to the contrary, the provisions of | 17 |
| Sections 2-405, 2-410, 2-415, and 2-420 shall control for any | 18 |
| annuity calculations and benefit accruals by members besides | 19 |
| later entrants on or after July 1, 2011. | 20 |
| (40 ILCS 5/2-405 new) | 21 |
| Sec. 2-405. Rate of accrual on or after July 1, 2011. For | 22 |
| all service by a member on or after July 1, 2011, the annual | 23 |
| retirement annuity rate of accrual is 2% of final average |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| salary for each year of service. | 2 |
| (40 ILCS 5/2-410 new) | 3 |
| Sec. 2-410. Annuity calculations for benefit accruals on or | 4 |
| after July 1, 2011. For purposes of calculating an annuity | 5 |
| based on service performed on or after July 1, 2011, the | 6 |
| following rules apply to benefit accruals on or after July 1, | 7 |
| 2011: | 8 |
| (a) "Final average salary" means the monthly salary | 9 |
| obtained by dividing the total salary of a participant during | 10 |
| the period of: (A) the 96 consecutive months of service in | 11 |
| which the total salary was the highest within the last 120 | 12 |
| months of service, or (B) the total period of service, if less | 13 |
| than 96 months, by the number of months of service in such | 14 |
| period; provided that the monthly salary to be considered in | 15 |
| each of the last 12 months of the final average salary period | 16 |
| shall not exceed 125% of the highest salary in any other month | 17 |
| in the final average salary period that precedes such final | 18 |
| 12-month period. In no event shall the monthly salary used to | 19 |
| determine final average salary for benefit accruals on or after | 20 |
| July 1, 2011 exceed the Social Security Contribution and | 21 |
| Benefit Base for the given month of service, or $10,000 indexed | 22 |
| for inflation by rules established by the system, whichever is | 23 |
| less. | 24 |
| (b) "Salary" means base salary paid to a member. | 25 |
| (c) The portion of any annuity earned on or after July 1, |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| 2011 shall be reduced by one-half of 1% for each month that the | 2 |
| member's retirement age is under the full (normal) retirement | 3 |
| age as provided in the federal Social Security Act. | 4 |
| (d) The maximum amount of creditable service a member may | 5 |
| establish on or after July 1, 2011 is 35 years. | 6 |
| (40 ILCS 5/2-415 new) | 7 |
| Sec. 2-415. Automatic annual increases for accruals on or | 8 |
| after July 1, 2011. A person receiving an annuity based on | 9 |
| service performed on or after July 1, 2011 shall, on the first | 10 |
| anniversary of retirement, but not before attaining the full | 11 |
| (normal) retirement age as provided in the federal Social | 12 |
| Security Act, and annually thereafter, have the portion of his | 13 |
| or her annuity earned on or after July 1, 2011 increased by the | 14 |
| lesser of (1) 3% or (2) one-half of the percentage increase, if | 15 |
| any, in the Consumer Price Index for All Urban Consumers | 16 |
| measured from the preceding January 1 to the January 1 of the | 17 |
| year during which the increase is being granted. The increase | 18 |
| for each year shall be applied to the amount of the recipient's | 19 |
| originally granted annuity. | 20 |
| (40 ILCS 5/2-420 new) | 21 |
| Sec. 2-420. Calculation of annuity. When calculating an | 22 |
| annuity for a participant who has service before and after July | 23 |
| 1, 2011, the participant's total accrued benefit shall be the | 24 |
| sum of (A) the participant's benefit accruals prior to July 1, |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| 2011 as if the participant had retired on that date, and (B) | 2 |
| the participant's benefit accruals on or after July 1, 2011, as | 3 |
| modified by the rules in sections 2-405, 2-410, and 2-415. | 4 |
| Within 180 days after the effective date of this amendatory Act | 5 |
| of the 96th General Assembly, the system shall promulgate rules | 6 |
| and regulations to effectuate the provisions of this amendatory | 7 |
| Act of the 96th General Assembly. In no event shall the | 8 |
| participant's total accrued benefit be less, at his retirement, | 9 |
| than if the participant's entire period of service had been as | 10 |
| a later entrant. | 11 |
| (40 ILCS 5/14-400 new) | 12 |
| Sec. 14-400. Provisions applicable to benefit accruals on | 13 |
| or after July 1, 2011. Notwithstanding anything in the | 14 |
| foregoing provisions of this Article to the contrary, the | 15 |
| provisions of Sections 14-405, 14-410, 14-415, and 14-420 shall | 16 |
| control for any annuity calculations and benefit accruals by | 17 |
| employees besides later entrants on or after July 1, 2011. | 18 |
| (40 ILCS 5/14-405 new) | 19 |
| Sec. 14-405. Rate of accrual on or after July 1, 2011. For | 20 |
| all service by an employee on or after July 1, 2011, the annual | 21 |
| retirement annuity rate of accrual is 2% of final average | 22 |
| compensation for each year of service for noncovered employees | 23 |
| and 1.5% of final average compensation for each year of service | 24 |
| for covered employees. |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| (40 ILCS 5/14-410 new) | 2 |
| Sec. 14-410. Annuity calculations for benefit accruals on | 3 |
| or after July 1, 2011. For purposes of calculating an annuity | 4 |
| based on service performed on or after July 1, 2011, the | 5 |
| following rules apply to benefit accruals on or after July 1, | 6 |
| 2011: | 7 |
| (a) "Final average compensation" means the monthly | 8 |
| compensation obtained by dividing the total compensation of an | 9 |
| employee during the period of: (A) the 96 consecutive months of | 10 |
| service in which the total compensation was the highest within | 11 |
| the last 120 months of service, or (B) the total period of | 12 |
| service, if less than 96 months, by the number of months of | 13 |
| service in such period; provided that the monthly compensation | 14 |
| to be considered in each of the last 12 months of the final | 15 |
| average compensation period shall not exceed 125% of the | 16 |
| highest compensation in any other month in the final average | 17 |
| compensation period that precedes such final 12-month period. | 18 |
| In no event shall the monthly compensation used to determine | 19 |
| final average compensation for benefit accruals on or after | 20 |
| July 1, 2011 exceed the Social Security Contribution and | 21 |
| Benefit Base for the given month of service, or $10,000 indexed | 22 |
| for inflation by rules established by the system, whichever is | 23 |
| less. | 24 |
| (b) "Compensation" means base compensation paid to an | 25 |
| employee. |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| (c) The portion of any annuity earned on or after July 1, | 2 |
| 2011 shall be reduced by one-half of 1% for each month that the | 3 |
| employee's retirement age is under the full (normal) retirement | 4 |
| age as provided in the federal Social Security Act. | 5 |
| (d) The maximum amount of creditable service an employee | 6 |
| may establish on or after July 1, 2011 is 35 years. | 7 |
| (40 ILCS 5/14-415 new) | 8 |
| Sec. 14-415. Automatic annual increases for accruals on or | 9 |
| after July 1, 2011. A person receiving an annuity based on | 10 |
| service performed on or after July 1, 2011 shall, on the first | 11 |
| anniversary of retirement, but not before attaining the full | 12 |
| (normal) retirement age as provided in the federal Social | 13 |
| Security Act, and annually thereafter, have the portion of his | 14 |
| or her annuity earned on or after July 1, 2011 increased by the | 15 |
| lesser of (1) 3% or (2) one-half of the percentage increase, if | 16 |
| any, in the Consumer Price Index for All Urban Consumers | 17 |
| measured from the preceding January 1 to the January 1 of the | 18 |
| year during which the increase is being granted. The increase | 19 |
| for each year shall be applied to the amount of the recipient's | 20 |
| originally granted annuity. | 21 |
| (40 ILCS 5/14-420 new) | 22 |
| Sec. 14-420. Calculation of annuity. When calculating an | 23 |
| annuity for an employee who has service before and after July | 24 |
| 1, 2011, the employee's total accrued benefit shall be the sum |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| of (A) the employee's benefit accruals prior to July 1, 2011 as | 2 |
| if the employee had retired on that date, and (B) the | 3 |
| employee's benefit accruals on or after July 1, 2011, as | 4 |
| modified by the rules in sections 14-405, 14-410, and 14-415. | 5 |
| Within 180 days after the effective date of this amendatory Act | 6 |
| of the 96th General Assembly, the system shall promulgate rules | 7 |
| and regulations to effectuate the provisions of this amendatory | 8 |
| Act of the 96th General Assembly. In no event shall the | 9 |
| employee's total accrued benefit be less, at his retirement, | 10 |
| than if the employee's entire period of service had been as a | 11 |
| later entrant. | 12 |
| (40 ILCS 5/15-400 new) | 13 |
| Sec. 15-400. Provisions applicable to benefit accruals on | 14 |
| or after July 1, 2011. Notwithstanding anything in the | 15 |
| foregoing provisions of this Article to the contrary, the | 16 |
| provisions of Sections 15-405, 15-410, 15-415, and 15-420 shall | 17 |
| control for any annuity calculations and benefit accruals by | 18 |
| employees besides later entrants on or after July 1, 2011. | 19 |
| (40 ILCS 5/15-405 new) | 20 |
| Sec. 15-405. Rate of accrual on or after July 1, 2011. For | 21 |
| all service by an employee on or after July 1, 2011, the annual | 22 |
| retirement annuity rate of accrual is 2% of final rate of | 23 |
| earnings for each year of service. |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| (40 ILCS 5/15-410 new) | 2 |
| Sec. 15-410. Annuity calculations for benefit accruals on | 3 |
| or after July 1, 2011. For purposes of calculating an annuity | 4 |
| based on service performed on or after July 1, 2011, the | 5 |
| following rules apply to benefit accruals on or after July 1, | 6 |
| 2011: | 7 |
| (a) "Final rate of earnings" means the monthly earnings | 8 |
| obtained by dividing the total earnings of an employee during | 9 |
| the period of: (A) the 96 consecutive months of service in | 10 |
| which the total earnings was the highest within the last 120 | 11 |
| months of service, or (B) the total period of service, if less | 12 |
| than 96 months, by the number of months of service in such | 13 |
| period; provided that the monthly earnings to be considered in | 14 |
| each of the last 12 months of the final rate of earnings period | 15 |
| shall not exceed 125% of the highest earnings in any other | 16 |
| month in the final rate of earnings period that precedes such | 17 |
| final 12-month period. In no event shall the monthly earnings | 18 |
| used to determine final rate of earnings for benefit accruals | 19 |
| on or after July 1, 2011 exceed the Social Security | 20 |
| Contribution and Benefit Base for the given month of service, | 21 |
| or $10,000 indexed for inflation by rules established by the | 22 |
| system, whichever is less. | 23 |
| (b) "Earnings" means base salary paid to an employee. | 24 |
| (c) The portion of any annuity earned on or after July 1, | 25 |
| 2011 shall be reduced by one-half of 1% for each month that the | 26 |
| employee's retirement age is under the full (normal) retirement |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
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| 1 |
| age as provided in the federal Social Security Act. | 2 |
| (d) The maximum amount of creditable service an employee | 3 |
| may establish on or after July 1, 2011 is 35 years. | 4 |
| (40 ILCS 5/15-415 new) | 5 |
| Sec. 15-415. Automatic annual increases for accruals on or | 6 |
| after July 1, 2011. A person receiving an annuity based on | 7 |
| service performed on or after July 1, 2011 shall, on the first | 8 |
| anniversary of retirement, but not before attaining the full | 9 |
| (normal) retirement age as provided in the federal Social | 10 |
| Security Act, and annually thereafter, have the portion of his | 11 |
| or her annuity earned on or after July 1, 2011 increased by the | 12 |
| lesser of (1) 3% or (2) one-half of the percentage increase, if | 13 |
| any, in the Consumer Price Index for All Urban Consumers | 14 |
| measured from the preceding January 1 to the January 1 of the | 15 |
| year during which the increase is being granted. The increase | 16 |
| for each year shall be applied to the amount of the recipient's | 17 |
| originally granted annuity. | 18 |
| (40 ILCS 5/15-420 new) | 19 |
| Sec. 15-420. Calculation of annuity. When calculating an | 20 |
| annuity for a participant who has service before and after July | 21 |
| 1, 2011, the participant's total accrued benefit shall be the | 22 |
| sum of (A) the participant's benefit accruals prior to July 1, | 23 |
| 2011 as if the participant had retired on that date, and (B) | 24 |
| the participant's benefit accruals on or after July 1, 2011, as |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
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| 1 |
| modified by the rules in sections 15-405, 15-410, and 15-415. | 2 |
| Within 180 days after the effective date of this amendatory Act | 3 |
| of the 96th General Assembly, the system shall promulgate rules | 4 |
| and regulations to effectuate the provisions of this amendatory | 5 |
| Act of the 96th General Assembly. In no event shall the | 6 |
| participant's total accrued benefit be less, at his retirement, | 7 |
| than if the participant's entire period of service had been as | 8 |
| a later entrant. | 9 |
| (40 ILCS 5/16-400 new) | 10 |
| Sec. 16-400. Provisions applicable to benefit accruals on | 11 |
| or after July 1, 2011.
Notwithstanding anything in the | 12 |
| foregoing provisions of this Article to the contrary, the | 13 |
| provisions of Sections 16-405, 16-410, 16-415, and 16-420 shall | 14 |
| control for any annuity calculations and benefit accruals by | 15 |
| teachers besides later entrants on or after July 1, 2011. | 16 |
| (40 ILCS 5/16-405 new) | 17 |
| Sec. 16-405. Rate of accrual on or after July 1, 2011. For | 18 |
| all service by a teacher on or after July 1, 2011, the annual | 19 |
| retirement annuity rate of accrual is 2% of final average | 20 |
| salary for each year of service. | 21 |
| (40 ILCS 5/16-410 new) | 22 |
| Sec. 16-410. Annuity calculations for benefit accruals on | 23 |
| or after July 1, 2011. For purposes of calculating an annuity |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| based on service performed on or after July 1, 2011, the | 2 |
| following rules apply to benefit accruals on or after July 1, | 3 |
| 2011: | 4 |
| (a) "Final average salary" means the monthly salary | 5 |
| obtained by dividing the total salary of an teacher during the | 6 |
| period of: (A) the 96 consecutive months of service in which | 7 |
| the total salary was the highest within the last 120 months of | 8 |
| service, or (B) the total period of service, if less than 96 | 9 |
| months, by the number of months of service in such period; | 10 |
| provided that the monthly salary to be considered in each of | 11 |
| the last 12 months of the final average salary period shall not | 12 |
| exceed 125% of the highest salary in any other month in the | 13 |
| final average salary period that precedes such final 12 month | 14 |
| period. In no event shall the monthly salary used to determine | 15 |
| final average salary for benefit accruals on or after July 1, | 16 |
| 2011 exceed the Social Security Contribution and Benefit Base | 17 |
| for the given month of service, or $10,000 indexed for | 18 |
| inflation by rules established by the system, whichever is | 19 |
| less. | 20 |
| (b) "Salary" means base salary paid to a teacher. | 21 |
| (c) The portion of any annuity earned on or after July 1, | 22 |
| 2011 shall be reduced by one-half of 1% for each month that the | 23 |
| teacher's retirement age is under the full (normal) retirement | 24 |
| age as provided in the federal Social Security Act. | 25 |
| (d) The maximum amount of creditable service a teacher may | 26 |
| establish on or after July 1, 2011 is 35 years. |
|
|
|
09600SB2914sam001 |
- 55 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| (40 ILCS 5/16-415 new) | 2 |
| Sec. 16-415. Automatic annual increases for accruals on or | 3 |
| after July 1, 2011. A person receiving an annuity based on | 4 |
| service performed on or after July 1, 2011 shall, on the first | 5 |
| anniversary of retirement, but not before attaining the full | 6 |
| (normal) retirement age as provided in the federal Social | 7 |
| Security Act, and annually thereafter, have the portion of his | 8 |
| or her annuity earned on or after July 1, 2011 increased by the | 9 |
| lesser of (1) 3% or (2) one-half of the percentage increase, if | 10 |
| any, in the Consumer Price Index for All Urban Consumers | 11 |
| measured from the preceding January 1 to the January 1 of the | 12 |
| year during which the increase is being granted. The increase | 13 |
| for each year shall be applied to the amount of the recipient's | 14 |
| originally granted annuity. | 15 |
| (40 ILCS 5/16-420 new) | 16 |
| Sec. 16-420. Calculation of annuity. When calculating an | 17 |
| annuity for a teacher who has service before and after July 1, | 18 |
| 2011, the teacher's total accrued benefit shall be the sum of | 19 |
| (A) the teacher's benefit accruals prior to July 1, 2011 as if | 20 |
| the teacher had retired on that date, and (B) the teacher's | 21 |
| benefit accruals on or after July 1, 2011, as modified by the | 22 |
| rules in sections 16-405, 16-410, and 16-415. Within 180 days | 23 |
| after the effective date of this amendatory Act of the 96th | 24 |
| General Assembly, the system shall promulgate rules and |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| regulations to effectuate the provisions of this amendatory Act | 2 |
| of the 96th General Assembly. In no event shall the teacher's | 3 |
| total accrued benefit be less, at his retirement, than if the | 4 |
| teacher's entire period of service had been as a later entrant. | 5 |
| (40 ILCS 5/18-400 new) | 6 |
| Sec. 18-400. Provisions applicable to benefit accruals on | 7 |
| or after July 1, 2011. Notwithstanding anything in the | 8 |
| foregoing provisions of this Article to the contrary, the | 9 |
| provisions of Sections 18-405, 18-410, 18-415, and 18-420 shall | 10 |
| control for any annuity calculations and benefit accruals by | 11 |
| judges besides later entrants on or after July 1, 2011. | 12 |
| (40 ILCS 5/18-405 new) | 13 |
| Sec. 18-405. Rate of accrual on or after July 1, 2011. For | 14 |
| all service by a judge on or after July 1, 2011, the annual | 15 |
| retirement annuity rate of accrual is 2% of final average | 16 |
| salary for each year of service. | 17 |
| (40 ILCS 5/18-410 new) | 18 |
| Sec. 18-410. Annuity calculations for benefit accruals on | 19 |
| or after July 1, 2011. For purposes of calculating an annuity | 20 |
| based on service performed on or after July 1, 2011, the | 21 |
| following rules apply to benefit accruals on or after July 1, | 22 |
| 2011: | 23 |
| (a) "Final average salary" means the monthly salary |
|
|
|
09600SB2914sam001 |
- 57 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| obtained by dividing the total salary of an judge during the | 2 |
| period of: (A) the 96 consecutive months of service in which | 3 |
| the total salary was the highest within the last 120 months of | 4 |
| service, or (B) the total period of service, if less than 96 | 5 |
| months, by the number of months of service in such period; | 6 |
| provided that the monthly salary to be considered in each of | 7 |
| the last 12 months of the final average salary period shall not | 8 |
| exceed 125% of the highest salary in any other month in the | 9 |
| final average salary period that precedes such final 12 month | 10 |
| period. In no event shall the monthly salary used to determine | 11 |
| final average salary for benefit accruals on or after July 1, | 12 |
| 2011 exceed the Social Security Contribution and Benefit Base | 13 |
| for the given month of service, or $10,000 indexed for | 14 |
| inflation by rules established by the system, whichever is | 15 |
| less. | 16 |
| (b) "Salary" means base salary paid to a judge. | 17 |
| (c) The portion of any annuity earned on or after July 1, | 18 |
| 2011 shall be reduced by one-half of 1% for each month that the | 19 |
| judge's retirement age is under the full (normal) retirement | 20 |
| age as provided in the federal Social Security Act. | 21 |
| (d) The maximum amount of creditable service a judge may | 22 |
| establish on or after July 1, 2011 is 35 years. | 23 |
| (40 ILCS 5/18-415 new) | 24 |
| Sec. 18-415. Automatic annual increases for accruals on or | 25 |
| after July 1, 2011. A person receiving an annuity based on |
|
|
|
09600SB2914sam001 |
- 58 - |
LRB096 16968 AMC 38762 a |
|
| 1 |
| service performed on or after July 1, 2011 shall, on the first | 2 |
| anniversary of retirement, but not before attaining the full | 3 |
| (normal) retirement age as provided in the federal Social | 4 |
| Security Act, and annually thereafter, have the portion of his | 5 |
| or her annuity earned on or after July 1, 2011 increased by the | 6 |
| lesser of (1) 3% or (2) one-half of the percentage increase, if | 7 |
| any, in the Consumer Price Index for All Urban Consumers | 8 |
| measured from the preceding January 1 to the January 1 of the | 9 |
| year during which the increase is being granted. The increase | 10 |
| for each year shall be applied to the amount of the recipient's | 11 |
| originally granted annuity. | 12 |
| (40 ILCS 5/18-420 new) | 13 |
| Sec. 18-420. Calculation of annuity. When calculating an | 14 |
| annuity for a participant who has service before and after July | 15 |
| 1, 2011, the participant's total accrued benefit shall be the | 16 |
| sum of (A) the participant's benefit accruals prior to July 1, | 17 |
| 2011 as if the participant had retired on that date, and (B) | 18 |
| the participant's benefit accruals on or after July 1, 2011, as | 19 |
| modified by the rules in sections 18-405, 18-410, and 18-415. | 20 |
| Within 180 days after the effective date of this amendatory Act | 21 |
| of the 96th General Assembly, the system shall promulgate rules | 22 |
| and regulations to effectuate the provisions of this amendatory | 23 |
| Act of the 96th General Assembly. In no event shall the | 24 |
| participant's total accrued benefit be less, at his retirement, | 25 |
| than if the participant's entire period of service had been as |
|
|
|
09600SB2914sam001 |
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LRB096 16968 AMC 38762 a |
|
| 1 |
| a later entrant. | 2 |
| ARTICLE 99.
| 3 |
| Section 99-99. Effective date. This Act takes effect upon | 4 |
| becoming law.".
|
|