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``` ` ` `(40 ILCS 5/11-134.3)` `(from Ch. 108 1/2, par. 11-134.3)` ```
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``` ` ` `(Text of Section WITH the changes made by P.A. 98-641, which has been held unconstitutional)` ` ` `Sec. 11-134.3. ` ```
Automatic increases in annuity for certain heretofore retired
participants.
``` ` ` ` ` ```
(a) A retired employee who (i) is receiving annuity based on a
service credit of 20 or more years regardless of age at retirement or based on
a service credit of 15 or more years with retirement at age 55 or over, and
(ii) does not qualify for the automatic increases in annuity provided for in
Section 11-134.1 of this Article, and (iii) elects to make a contribution to the
Fund at a time and manner prescribed by the Retirement Board, of a sum
equal to 1% of the amount of final monthly salary times the number of full
years of service on which the annuity was based in those cases where the
annuity was computed on the money purchase formula, and in those cases in
which the annuity was computed under the minimum annuity formula provisions
of this Article a sum equal to 1% of the average monthly salary on which
the annuity was based times such number of full years of service, shall
have his original fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains the age of 65
years, if such age of 65 years is attained in the year 1969 or later, by an
amount equal to 1 1/2%, and by an equal additional 1 1/2% in January of
each year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
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``` ` ` ```
In those cases in which the retired employee receiving annuity has
attained the age of 66 or more years in the year 1969, he shall have such
annuity increased in January of the year 1970 by an amount equal to 1 1/2%
multiplied by the number equal to the number of months of January elapsing
from and including January of the year immediately following the year he
attained the age of 65 years if retired at or prior to age 65, or from and
including January of the year immediately following the year of retirement
if retired at an age greater than 65 years, to and including January of the
year 1970, and by an equal additional 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
``` ```
``` ` ` ```
(b) To defray the annual cost of such increases, the annual interest income
of the Fund, accruing from investments held by the Fund, exclusive of gains
or losses on sales or exchanges of assets during the year, over and above
4% a year, shall be used to the extent necessary and available to finance
the cost of such increases for the following year, and such amount shall be
transferred as of the end of each year, beginning with the year 1969, to a
Fund account designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Sec. 11-210. The sums
contributed by annuitants as provided for in this Section shall also be
placed in the aforesaid Supplementary Payment Reserve and shall be applied
for and used for the purposes of such Fund account, together with the
aforesaid interest.
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``` ` ` ```
In the event the monies in the Supplementary Payment Reserve in any year
arising from: (1) the available interest income as defined hereinbefore and
accruing in the preceding year above 4% a year and (2) the contributions by
retired persons, as set forth hereinbefore, are insufficient to make the
total payments to all persons estimated to be entitled to the annuity
increases specified hereinbefore, then (3) any interest earnings over 4% a
year beginning with the year 1969 which were not previously used to finance
such increases and which were transferred to the Prior Service Annuity
Reserve may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current year, and such
sums shall be transferred from the Prior Service Annuity Reserve.
``` ```
``` ` ` ```
In the event the total monies available in the Supplementary Payment
Reserve from the preceding indicated sources are insufficient to make the
total payments to all persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies available to the
total of the total payments for that year shall be paid to each person for
that year.
``` ```
``` ` ` ```
The Fund shall be obligated for the payment of the increases in annuity
as provided for in this Section only to the extent that the assets for such
purpose, as specified herein, are available.
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``` ` ` `(b-5) Notwithstanding any provision of this Section to the contrary:` ` ` ` ` `(1) Except for persons eligible under subdivision (3) ` | ||

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` ` ` ` `(2) In all other years, beginning January 1, 2015, ` | ||

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` ` ` ` `For the purposes of this Section, "consumer price ` | ||

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` ` ` ` `(3) A person is eligible under this subdivision (3) ` | ||

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` ` ` ` `Beginning January 1, 2015, for a person who is ` | ||

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` ` ` ` `Beginning January 1, 2015, for any other year in ` | ||

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` ` `For the purposes of Section 1-103.1, this subsection (b-5) is applicable without regard to whether the employee was in active service on or after the effective date of this amendatory Act of the 98th General Assembly. This subsection (b-5) applies to any former employee who on or after the effective date of this amendatory Act of the 98th General Assembly is receiving a retirement annuity and is eligible for an automatic annual increase under this Section. ` `(Source: P.A. 98-641, eff. 6-9-14.)` ```
``` ` ` `(Text of Section WITHOUT the changes made by P.A. 98-641, which has been held unconstitutional)` ` ` `Sec. 11-134.3. ` ```
Automatic increases in annuity for certain heretofore retired
participants.
``` ```
A retired employee who (a) is receiving annuity based on a
service credit of 20 or more years regardless of age at retirement or based on
a service credit of 15 or more years with retirement at age 55 or over, and
(b) does not qualify for the automatic increases in annuity provided for in
Section 11-134.1 of this Article, and (c) elects to make a contribution to the
Fund at a time and manner prescribed by the Retirement Board, of a sum
equal to 1% of the amount of final monthly salary times the number of full
years of service on which the annuity was based in those cases where the
annuity was computed on the money purchase formula, and in those cases in
which the annuity was computed under the minimum annuity formula provisions
of this Article a sum equal to 1% of the average monthly salary on which
the annuity was based times such number of full years of service, shall
have his original fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains the age of 65
years, if such age of 65 years is attained in the year 1969 or later, by an
amount equal to 1 1/2%, and by an equal additional 1 1/2% in January of
each year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
``` ```
``` ` ` ```
In those cases in which the retired employee receiving annuity has
attained the age of 66 or more years in the year 1969, he shall have such
annuity increased in January of the year 1970 by an amount equal to 1 1/2%
multiplied by the number equal to the number of months of January elapsing
from and including January of the year immediately following the year he
attained the age of 65 years if retired at or prior to age 65, or from and
including January of the year immediately following the year of retirement
if retired at an age greater than 65 years, to and including January of the
year 1970, and by an equal additional 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
``` ```
``` ` ` ```
To defray the annual cost of such increases, the annual interest income
of the Fund, accruing from investments held by the Fund, exclusive of gains
or losses on sales or exchanges of assets during the year, over and above
4% a year, shall be used to the extent necessary and available to finance
the cost of such increases for the following year, and such amount shall be
transferred as of the end of each year, beginning with the year 1969, to a
Fund account designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Sec. 11-210. The sums
contributed by annuitants as provided for in this Section shall also be
placed in the aforesaid Supplementary Payment Reserve and shall be applied
for and used for the purposes of such Fund account, together with the
aforesaid interest.
``` ```
``` ` ` ```
In the event the monies in the Supplementary Payment Reserve in any year
arising from: (1) the available interest income as defined hereinbefore and
accruing in the preceding year above 4% a year and (2) the contributions by
retired persons, as set forth hereinbefore, are insufficient to make the
total payments to all persons estimated to be entitled to the annuity
increases specified hereinbefore, then (3) any interest earnings over 4% a
year beginning with the year 1969 which were not previously used to finance
such increases and which were transferred to the Prior Service Annuity
Reserve may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current year, and such
sums shall be transferred from the Prior Service Annuity Reserve.
``` ```
``` ` ` ```
In the event the total monies available in the Supplementary Payment
Reserve from the preceding indicated sources are insufficient to make the
total payments to all persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies available to the
total of the total payments for that year shall be paid to each person for
that year.
``` ```
``` ` ` ```
The Fund shall be obligated for the payment of the increases in annuity
as provided for in this Section only to the extent that the assets for such
purpose, as specified herein, are available.
``` ```
``` `(Source: P.A. 90-766, eff. 8-14-98.)` |