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90_HB0827
40 ILCS 5/14-103.12 from Ch. 108 1/2, par. 14-103.12
40 ILCS 5/14-108 from Ch. 108 1/2, par. 14-108
40 ILCS 5/14-114 from Ch. 108 1/2, par. 14-114
40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119
40 ILCS 5/14-121 from Ch. 108 1/2, par. 14-121
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/15-145 from Ch. 108 1/2, par. 15-145
40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
40 ILCS 5/16-133.1 from Ch. 108 1/2, par. 16-133.1
40 ILCS 5/16-143.1 from Ch. 108 1/2, par. 16-143.1
40 ILCS 5/17-116 from Ch. 108 1/2, par. 17-116
40 ILCS 5/17-119 from Ch. 108 1/2, par. 17-119
40 ILCS 5/17-122 from Ch. 108 1/2, par. 17-122
30 ILCS 805/8.21 new
Amends the State Employee, Universities, Downstate
Teacher, and Chicago Teacher Articles of the Pension Code to
provide for a new retirement formula of 1.67% per year of
service for regular coordinated members and 2.2% per year of
service for regular noncoordinated members. Also provides a
one-time increase in certain retirement and survivor's
annuities. Amends the State Employee Article to allow
certain security employees of the Department of Corrections
or the Department of Human Services to have their benefits
based on last day salary rather than a 48-month average.
Amends the State Mandates Act to require implementation
without reimbursement. Effective immediately.
LRB9000628EGfgA
LRB9000628EGfgA
1 AN ACT in relation to public employee pensions, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 14-103.12, 14-108, 14-114, 14-119, 14-121,
7 15-136, 15-145, 16-133, 16-133.1, 16-143.1, 17-116, 17-119,
8 and 17-122 as follows:
9 (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
10 Sec. 14-103.12. Final average compensation.
11 (a) For retirement and survivor annuities, "final
12 average compensation" means the monthly compensation obtained
13 by dividing the total compensation of an employee during the
14 period of: (1) the 48 consecutive months of service within
15 the last 120 months of service in which the total
16 compensation was the highest, or (2) the total period of
17 service, if less than 48 months, by the number of months of
18 service in such period; provided that for purposes of a
19 retirement annuity the average compensation for the last 12
20 months of the 48-month period shall not exceed the final
21 average compensation by more than 25%.
22 (b) For death and disability benefits, in the case of a
23 full-time employee, "final average compensation" means the
24 greater of (1) the rate of compensation of the employee at
25 the date of death or disability multiplied by 1 in the case
26 of a salaried employee, by 174 in the case of an hourly
27 employee, and by 22 in the case of a per diem employee, or
28 (2) for benefits commencing on or after January 1, 1991,
29 final average compensation as determined under subsection
30 (a).
31 For purposes of this paragraph, full or part-time status
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1 shall be certified by the employing agency. Final rate of
2 compensation for a part-time employee shall be the total
3 compensation earned during the last full calendar month prior
4 to the date of death or disability.
5 (c) Notwithstanding the provisions of subsection (a),
6 for the purpose of calculating retirement and survivor
7 annuities of persons with at least 20 years of eligible
8 creditable service as a State policeman or as a security
9 employee of the Department of Corrections or the Department
10 of Human Services (or its predecessor the Department of
11 Mental Health and Developmental Disabilities), "final average
12 compensation" means the monthly rate of compensation received
13 by the person on the last day of eligible creditable service
14 as a State policeman, or the average monthly compensation
15 received by the person for the last 48 months of service
16 prior to retirement, whichever is greater.
17 (d) Notwithstanding the provisions of subsection (a),
18 for a person who was receiving, on the date of retirement or
19 death, a disability benefit calculated under subdivision
20 (b)(2) of this Section, the final average compensation used
21 to calculate the disability benefit may be used for purposes
22 of calculating the retirement and survivor annuities.
23 (e) In computing the final average compensation, periods
24 of military leave shall not be considered.
25 (Source: P.A. 86-273; 86-1488.)
26 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
27 (Text of Section before amendment by P.A. 89-507)
28 Sec. 14-108. Amount of retirement annuity. A member who
29 has contributed to the System for at least 12 months, shall
30 be entitled to a prior service annuity for each year of
31 certified prior service credited to him, except that a member
32 shall receive 1/3 of the prior service annuity for each year
33 of service for which contributions have been made and all of
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1 such annuity shall be payable after the member has made
2 contributions for a period of 3 years. Proportionate amounts
3 shall be payable for service of less than a full year after
4 completion of at least 12 months.
5 The total period of service to be considered in
6 establishing the measure of prior service annuity shall
7 include service credited in the Teachers' Retirement System
8 of the State of Illinois and the State Universities
9 Retirement System for which contributions have been made by
10 the member to such systems; provided that at least 1 year of
11 the total period of 3 years prescribed for the allowance of a
12 full measure of prior service annuity shall consist of
13 membership service in this System for which credit has been
14 granted.
15 (a) In the case of a member who retires on or after the
16 effective date of this amendatory Act of 1997 and is a
17 noncovered employee, the retirement annuity for membership
18 service and prior service shall be 2.2% 1.67% of final
19 average compensation for each of the first 10 years of
20 service; 1.90% for each of the next 10 years of service;
21 2.10% for each year of service in excess of 20 but not
22 exceeding 30; and 2.30% for each year in excess of 30. Any
23 service credit established as a covered employee shall be
24 considered in determining the applicable percentages and
25 computed as stated in paragraph (b).
26 (b) In the case of a member who retires on or after the
27 effective date of this amendatory Act of 1997 and is a
28 covered employee, the retirement annuity for membership
29 service and prior service shall be computed as stated in
30 paragraph (a) for all service credit established as a
31 noncovered employee; for service credit established as a
32 covered employee it shall be 1.67% of final average
33 compensation 1% for each of the first 10 years of service;
34 1.10% for each of the next 10 years of service; 1.30% for
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1 each year of service in excess of 20 but not exceeding 30;
2 and 1.50% for each year of service in excess of 30. Any
3 service credit established as a noncovered employee shall be
4 considered in determining the applicable percentages.
5 (c) For a member with 30 but less than 35 years of
6 creditable service retiring after attaining age 55 but before
7 age 60, the retirement annuity shall be reduced by 1/2 of 1%
8 for each month that the member's age is under age 60 at the
9 time of retirement.
10 (d) A retirement annuity shall not exceed 75% of final
11 average compensation, subject to such extension as may result
12 from the application of Section 14-114 or Section 14-115.
13 (e) The retirement annuity payable to any covered
14 employee who is a member of the System and in service on
15 January 1, 1969, or in service thereafter in 1969 as a result
16 of legislation enacted by the Illinois General Assembly
17 transferring the member to State employment from county
18 employment in a county Department of Public Aid in counties
19 of 3,000,000 or more population, under a plan of coordination
20 with the Old Age, Survivors and Disability provisions
21 thereof, if not fully insured for Old Age Insurance payments
22 under the Federal Old Age, Survivors and Disability Insurance
23 provisions at the date of acceptance of a retirement annuity,
24 shall not be less than the amount for which the member would
25 have been eligible if coordination were not applicable.
26 (f) The retirement annuity payable to any covered
27 employee who is a member of the System and in service on
28 January 1, 1969, or in service thereafter in 1969 as a result
29 of the legislation designated in the immediately preceding
30 paragraph, if fully insured for Old Age Insurance payments
31 under the Federal Social Security Act at the date of
32 acceptance of a retirement annuity, shall not be less than an
33 amount which when added to the Primary Insurance Benefit
34 payable to the member upon attainment of age 65 under such
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1 Federal Act, will equal the annuity which would otherwise be
2 payable if the coordinated plan of coverage were not
3 applicable.
4 (g) In the case of a member who is a noncovered
5 employee, the retirement annuity for membership service as a
6 full-time security employee of the Department of Corrections
7 or security employee of the Department of Mental Health and
8 Developmental Disabilities shall be 1.9% of final average
9 compensation for each of the first 10 years of service; 2.1%
10 for each of the next 10 years of service; 2.25% for each year
11 of service in excess of 20 but not exceeding 30; and 2.5% for
12 each year in excess of 30; or as provided in subsection (a)
13 if the resulting benefit is greater.
14 (h) In the case of a member who is a covered employee,
15 the retirement annuity for membership service as a full-time
16 security employee of the Department of Corrections or
17 security employee of the Department of Mental Health and
18 Developmental Disabilities shall be 1.67% of final average
19 compensation for each of the first 10 years of service; 1.90%
20 for each of the next 10 years of service; 2.10% for each year
21 of service in excess of 20 but not exceeding 30; and 2.30%
22 for each year in excess of 30.
23 (i) For the purposes of this Section and Section 14-133
24 of this Act, the term "security employee of the Department of
25 Corrections" and the term "security employee of the
26 Department of Mental Health and Developmental Disabilities"
27 shall have the meanings ascribed to them in subsection (c) of
28 Section 14-110.
29 (j) The retirement annuity computed pursuant to
30 paragraphs (g) or (h) shall be applicable only to those
31 security employees of the Department of Corrections and
32 security employees of the Department of Mental Health and
33 Developmental Disabilities who have at least 20 years of
34 membership service and who are not eligible for the
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1 alternative retirement annuity provided under Section 14-110.
2 However, persons transferring to this System under Section
3 14-108.2 who have service credit under Article 16 of this
4 Code may count such service toward establishing their
5 eligibility under the 20-year service requirement of this
6 subsection; but such service may be used only for
7 establishing such eligibility, and not for the purpose of
8 increasing or calculating any benefit.
9 (k) In the case of a member who has at least 10 years of
10 creditable service as a court reporter, the retirement
11 annuity for service as a court reporter shall be 2.2% of
12 final average compensation for each year of such service as a
13 noncovered employee, and 1.5% of final average compensation
14 for each year of such service as a covered employee.
15 (Source: P.A. 86-272; 86-273; 86-1028.)
16 (Text of Section after amendment by P.A. 89-507)
17 Sec. 14-108. Amount of retirement annuity. A member who
18 has contributed to the System for at least 12 months, shall
19 be entitled to a prior service annuity for each year of
20 certified prior service credited to him, except that a member
21 shall receive 1/3 of the prior service annuity for each year
22 of service for which contributions have been made and all of
23 such annuity shall be payable after the member has made
24 contributions for a period of 3 years. Proportionate amounts
25 shall be payable for service of less than a full year after
26 completion of at least 12 months.
27 The total period of service to be considered in
28 establishing the measure of prior service annuity shall
29 include service credited in the Teachers' Retirement System
30 of the State of Illinois and the State Universities
31 Retirement System for which contributions have been made by
32 the member to such systems; provided that at least 1 year of
33 the total period of 3 years prescribed for the allowance of a
34 full measure of prior service annuity shall consist of
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1 membership service in this system for which credit has been
2 granted.
3 (a) In the case of a member who retires on or after the
4 effective date of this amendatory Act of 1997 and is a
5 noncovered employee, the retirement annuity for membership
6 service and prior service shall be 2.2% 1.67% of final
7 average compensation for each of the first 10 years of
8 service; 1.90% for each of the next 10 years of service;
9 2.10% for each year of service in excess of 20 but not
10 exceeding 30; and 2.30% for each year in excess of 30. Any
11 service credit established as a covered employee shall be
12 considered in determining the applicable percentages and
13 computed as stated in paragraph (b).
14 (b) In the case of a member who retires on or after the
15 effective date of this amendatory Act of 1997 and is a
16 covered employee, the retirement annuity for membership
17 service and prior service shall be computed as stated in
18 paragraph (a) for all service credit established as a
19 noncovered employee; for service credit established as a
20 covered employee it shall be 1.67% of final average
21 compensation 1% for each of the first 10 years of service;
22 1.10% for each of the next 10 years of service; 1.30% for
23 each year of service in excess of 20 but not exceeding 30;
24 and 1.50% for each year of service in excess of 30. Any
25 service credit established as a noncovered employee shall be
26 considered in determining the applicable percentages.
27 (c) For a member with 30 but less than 35 years of
28 creditable service retiring after attaining age 55 but before
29 age 60, the retirement annuity shall be reduced by 1/2 of 1%
30 for each month that the member's age is under age 60 at the
31 time of retirement.
32 (d) A retirement annuity shall not exceed 75% of final
33 average compensation, subject to such extension as may result
34 from the application of Section 14-114 or Section 14-115.
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1 (e) The retirement annuity payable to any covered
2 employee who is a member of the System and in service on
3 January 1, 1969, or in service thereafter in 1969 as a result
4 of legislation enacted by the Illinois General Assembly
5 transferring the member to State employment from county
6 employment in a county Department of Public Aid in counties
7 of 3,000,000 or more population, under a plan of coordination
8 with the Old Age, Survivors and Disability provisions
9 thereof, if not fully insured for Old Age Insurance payments
10 under the Federal Old Age, Survivors and Disability Insurance
11 provisions at the date of acceptance of a retirement annuity,
12 shall not be less than the amount for which the member would
13 have been eligible if coordination were not applicable.
14 (f) The retirement annuity payable to any covered
15 employee who is a member of the System and in service on
16 January 1, 1969, or in service thereafter in 1969 as a result
17 of the legislation designated in the immediately preceding
18 paragraph, if fully insured for Old Age Insurance payments
19 under the Federal Social Security Act at the date of
20 acceptance of a retirement annuity, shall not be less than an
21 amount which when added to the Primary Insurance Benefit
22 payable to the member upon attainment of age 65 under such
23 Federal Act, will equal the annuity which would otherwise be
24 payable if the coordinated plan of coverage were not
25 applicable.
26 (g) In the case of a member who is a noncovered
27 employee, the retirement annuity for membership service as a
28 full-time security employee of the Department of Corrections
29 or security employee of the Department of Human Services
30 shall be 1.9% of final average compensation for each of the
31 first 10 years of service; 2.1% for each of the next 10 years
32 of service; 2.25% for each year of service in excess of 20
33 but not exceeding 30; and 2.5% for each year in excess of 30;
34 or as provided in subsection (a) if the resulting benefit is
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1 greater.
2 (h) In the case of a member who is a covered employee,
3 the retirement annuity for membership service as a full-time
4 security employee of the Department of Corrections or
5 security employee of the Department of Human Services shall
6 be 1.67% of final average compensation for each of the first
7 10 years of service; 1.90% for each of the next 10 years of
8 service; 2.10% for each year of service in excess of 20 but
9 not exceeding 30; and 2.30% for each year in excess of 30.
10 (i) For the purposes of this Section and Section 14-133
11 of this Act, the term "security employee of the Department of
12 Corrections" and the term "security employee of the
13 Department of Human Services" shall have the meanings
14 ascribed to them in subsection (c) of Section 14-110.
15 (j) The retirement annuity computed pursuant to
16 paragraphs (g) or (h) shall be applicable only to those
17 security employees of the Department of Corrections and
18 security employees of the Department of Human Services who
19 have at least 20 years of membership service and who are not
20 eligible for the alternative retirement annuity provided
21 under Section 14-110. However, persons transferring to this
22 System under Section 14-108.2 who have service credit under
23 Article 16 of this Code may count such service toward
24 establishing their eligibility under the 20-year service
25 requirement of this subsection; but such service may be used
26 only for establishing such eligibility, and not for the
27 purpose of increasing or calculating any benefit.
28 (k) In the case of a member who has at least 10 years of
29 creditable service as a court reporter, the retirement
30 annuity for service as a court reporter shall be 2.2% of
31 final average compensation for each year of such service as a
32 noncovered employee, and 1.5% of final average compensation
33 for each year of such service as a covered employee.
34 (Source: P.A. 89-507, eff. 7-1-97.)
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1 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
2 Sec. 14-114. Automatic increase in retirement annuity.
3 (a) Any person receiving a retirement annuity under this
4 Article who retires having attained age 60, or who retires
5 before age 60 having at least 35 years of creditable service,
6 shall on January 1, next following the first full year of
7 retirement, have the amount of the then fixed and payable
8 monthly retirement annuity increased 3%. Any person
9 receiving a retirement annuity under this Article who retires
10 before attainment of age 60 and with less than 35 years of
11 creditable service shall have the amount of the fixed and
12 payable retirement annuity increased by 3% on the January 1
13 occurring on or next following (1) attainment of age 60, or
14 (2) the first anniversary of retirement, whichever occurs
15 later. However, for persons who receive the alternative
16 retirement annuity under Section 14-110, references in this
17 subsection (a) to attainment of age 60 shall be deemed to
18 refer to attainment of age 55. For a person receiving early
19 retirement incentives under Section 14-108.3 whose retirement
20 annuity began after January 1, 1992 pursuant to an extension
21 granted under subsection (e) of that Section, the first
22 anniversary of retirement shall be deemed to be January 1,
23 1993.
24 On each January 1 following the date of the initial
25 increase under this subsection, the employee's monthly
26 retirement annuity shall be increased by an additional 3%.
27 Beginning January 1, 1990, all automatic annual increases
28 payable under this Section shall be calculated as a
29 percentage of the total annuity payable at the time of the
30 increase, including previous increases granted under this
31 Article.
32 (b) The provisions of subsection (a) of this Section
33 shall be applicable to an employee only if the employee makes
34 the additional contributions required after December 31, 1969
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1 for the purpose of the automatic increases for not less than
2 the equivalent of one full year. If an employee becomes an
3 annuitant before his additional contributions equal one full
4 year's contributions based on his salary at the date of
5 retirement, the employee may pay the necessary balance of the
6 contributions to the system, without interest, and be
7 eligible for the increasing annuity authorized by this
8 Section.
9 (c) The provisions of subsection (a) of this Section
10 shall not be applicable to any annuitant who is on retirement
11 on December 31, 1969, and thereafter returns to State
12 service, unless the member has established at least one year
13 of additional creditable service following reentry into
14 service.
15 (d) In addition to other increases which may be provided
16 by this Section, on January 1, 1981 any annuitant who was
17 receiving a retirement annuity on or before January 1, 1971
18 shall have his retirement annuity then being paid increased
19 $1 per month for each year of creditable service. On January
20 1, 1982, any annuitant who began receiving a retirement
21 annuity on or before January 1, 1977, shall have his
22 retirement annuity then being paid increased $1 per month for
23 each year of creditable service.
24 On January 1, 1987, any annuitant who began receiving a
25 retirement annuity on or before January 1, 1977, shall have
26 the monthly retirement annuity increased by an amount equal
27 to 8¢ per year of creditable service times the number of
28 years that have elapsed since the annuity began.
29 (d-1) On January 1, 1998, every annuitant who began
30 receiving a retirement annuity on or before January 1, 1991
31 shall have the monthly retirement annuity increased by an
32 amount equal to 10¢ multiplied by the number of full years of
33 creditable service multiplied by the number of full years
34 that have elapsed since the annuity began. Every annuitant
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1 who begins receiving a retirement annuity after January 1,
2 1991 and before the effective date of this amendatory Act of
3 1997 shall have the monthly retirement annuity increased on
4 the January 1 occurring on or next following the seventh
5 anniversary of retirement, by an amount equal to 70¢
6 multiplied by the number of full years of creditable service
7 upon which the retirement annuity is based. The increase
8 under this subsection shall be included in the calculation of
9 increases granted simultaneously or thereafter under
10 subsection (d).
11 (e) Every person who receives the alternative retirement
12 annuity under Section 14-110 and who is eligible to receive
13 the 3% increase under subsection (a) on January 1, 1986,
14 shall also receive on that date a one-time increase in
15 retirement annuity equal to the difference between (1) his
16 actual retirement annuity on that date, including any
17 increases received under subsection (a), and (2) the amount
18 of retirement annuity he would have received on that date if
19 the amendments to subsection (a) made by Public Act 84-162
20 had been in effect since the date of his retirement.
21 (Source: P.A. 86-273; 87-1265.)
22 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
23 Sec. 14-119. Amount of widow's annuity.
24 (a) The widow's annuity shall be 50% of the amount of
25 retirement annuity payable to the member on the date of death
26 while on retirement if an annuitant, or on the date of his
27 death while in service if an employee, regardless of his age
28 on such date, or on the date of withdrawal if death occurred
29 after termination of service under the conditions prescribed
30 in the preceding Section.
31 (b) If an eligible widow, regardless of age, has in her
32 care any unmarried child or children of the member under age
33 18, the widow's annuity shall be increased in the amount of
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1 5% of the retirement annuity for each such child, but the
2 combined payments for a widow and children shall not exceed
3 66 2/3% of the member's earned retirement annuity.
4 The amount of retirement annuity from which the widow's
5 annuity is derived shall be that earned by the member without
6 regard to whether he attained age 60 prior to his withdrawal
7 under the conditions stated or prior to his death.
8 (c) Adopted children shall be considered as children of
9 the member only if the proceedings for adoption were
10 commenced at least 1 year prior to the member's death.
11 Marriage of a child shall render the child ineligible for
12 further consideration in the increase in the amount of the
13 widow's annuity.
14 Attainment of age 18 of a child shall render him
15 ineligible for further consideration in the increase of the
16 widow's annuity, but the annuity to the widow shall be
17 continued thereafter, without regard to her age at that time.
18 (d) A widow's annuity payable on account of any covered
19 employee who shall have been a covered employee for at least
20 18 months shall be reduced by 1/2 of the amount of survivors
21 benefits to which his beneficiaries are eligible under the
22 provisions of the Federal Social Security Act, except that
23 (1) the amount of any widow's annuity payable under this
24 Article shall not be reduced by reason of any increase under
25 that Act which occurs after the offset required by this
26 subsection is first applied to that annuity, and (2) for
27 benefits granted on or after January 1, 1992, the offset
28 under this subsection (d) shall not exceed 50% of the amount
29 of widow's annuity otherwise payable.
30 (e) Upon the death of a recipient of a widow's annuity
31 the excess, if any, of the member's accumulated
32 contributions plus credited interest over all annuity
33 payments to the member and widow, exclusive of the $500 lump
34 sum payment, shall be paid to the named beneficiary of the
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1 widow, or if none has been named, to the estate of the widow,
2 provided no reversionary annuity is payable.
3 (f) On January 1, 1981, any recipient of a widow's
4 annuity who was receiving a widow's annuity on or before
5 January 1, 1971, shall have her widow's annuity then being
6 paid increased by 1% for each full year which has elapsed
7 from the date the widow's annuity began. On January 1, 1982,
8 any recipient of a widow's annuity who began receiving a
9 widow's annuity after January 1, 1971, but before January 1,
10 1981, shall have her widow's annuity then being paid
11 increased by 1% for each full year which has elapsed from the
12 date the widow's annuity began. On January 1, 1987, any
13 recipient of a widow's annuity who began receiving the
14 widow's annuity on or before January 1, 1977, shall have the
15 monthly widow's annuity increased by $1 for each full year
16 which has elapsed since the date the annuity began.
17 (f-1) On January 1, 1998, every widow who began
18 receiving a widow's annuity on or before January 1, 1991
19 shall have the monthly widow's annuity increased by an amount
20 equal to 10¢ multiplied by the number of full years of the
21 deceased spouse's creditable service multiplied by the number
22 of full years that have elapsed since the annuity began.
23 Every annuitant who begins receiving a widow's annuity after
24 January 1, 1991 and before the effective date of this
25 amendatory Act of 1997 shall have the monthly widow's annuity
26 increased on the January 1 occurring on or next following the
27 seventh anniversary of the commencement of the widow's
28 annuity, by an amount equal to 70¢ multiplied by the number
29 of full years of the deceased spouse's creditable service.
30 The increase under this subsection shall be included in the
31 calculation of increases granted simultaneously or thereafter
32 under subsection (g).
33 (g) Beginning January 1, 1990, every widow's annuity
34 shall be increased (1) on each January 1 occurring on or
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1 after the commencement of the annuity if the deceased member
2 died while receiving a retirement annuity, or (2) in other
3 cases, on each January 1 occurring on or after the first
4 anniversary of the commencement of the annuity, by an amount
5 equal to 3% of the current amount of the annuity, including
6 any previous increases under this Article. Such increases
7 shall apply without regard to whether the deceased member was
8 in service on or after the effective date of Public Act
9 86-1488, but shall not accrue for any period prior to January
10 1, 1990.
11 (Source: P.A. 86-273; 86-1488; 87-794.)
12 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
13 Sec. 14-121. Amount of survivors annuity. A survivors
14 annuity beneficiary shall be entitled upon death of the
15 member to a single sum payment of $1,000, payable pro rata
16 among all persons entitled thereto, together with a survivors
17 annuity payable at the rates and under the conditions
18 specified in this Article.
19 (a) If the survivors annuity beneficiary is a spouse,
20 the survivors annuity shall be 30% of final average
21 compensation subject to a maximum payment of $400 per month.
22 (b) If an eligible child or children under the care of a
23 spouse also survives the member, such spouse as natural
24 guardian of the child or children shall receive, in addition
25 to the foregoing annuity, 20% of final average compensation
26 on account of each such child and 10% of final average
27 compensation divided pro rata among such children, subject to
28 a maximum payment on account of all survivor annuity
29 beneficiaries of $600 per month, or 80% of the member's final
30 average compensation, whichever is the lesser.
31 (c) If the survivors annuity beneficiary or
32 beneficiaries consists of an unmarried child or children, the
33 amount of survivors annuity shall be 20% of final average
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1 compensation to each child, and 10% of final average
2 compensation divided pro rata among all such children
3 entitled to such annuity, subject to a maximum payment to all
4 children combined of $600 per month or 80% of the member's
5 final average compensation, whichever is the lesser.
6 (d) If the survivors annuity beneficiary is one or more
7 dependent parents, the annuity shall be 20% of final average
8 compensation to each parent and 10% of final average
9 compensation divided pro rata among the parents who qualify
10 for this annuity, subject to a maximum payment to both
11 dependent parents of $400 per month.
12 (e) The survivors annuity to the spouse, children or
13 dependent parents of a member whose death occurs after the
14 date of last withdrawal, or after retirement, or while in
15 service following reentry into service after retirement but
16 before completing 1 1/2 years of additional creditable
17 service, shall not exceed the lesser of 80% of the member's
18 earned retirement annuity at the date of death or the maximum
19 previously established in this Section.
20 (f) In applying the limitation prescribed on the
21 combined payments to 2 or more survivors annuity
22 beneficiaries, the annuity on account of each beneficiary
23 shall be reduced pro rata until such time as the number of
24 beneficiaries makes the reduction no longer applicable.
25 (g) A survivors annuity payable on account of any
26 covered employee who shall have been a covered employee for
27 at least 18 months at date of death or last withdrawal,
28 whichever is the later, shall be reduced by 1/2 of the
29 survivors benefits to which his beneficiaries are eligible
30 under the federal Social Security Act, except that (1) the
31 survivors annuity payable under this Article shall not be
32 reduced by any increase under that Act which occurs after the
33 offset required by this subsection is first applied to that
34 annuity, and (2) for benefits granted on or after January 1,
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1 1992, the offset under this subsection (g) shall not exceed
2 50% of the amount of survivors annuity otherwise payable.
3 (h) The minimum payment to a beneficiary hereunder shall
4 be $60 per month, which shall be reduced in accordance with
5 the limitation prescribed on the combined payments to all
6 beneficiaries of a member.
7 (i) Subject to the conditions set forth in Section
8 14-120, the minimum total survivors annuity benefit payable
9 to the survivors annuity beneficiaries of a deceased member
10 or annuitant whose death occurs on or after January 1, 1984,
11 shall be 50% of the amount of retirement annuity that was or
12 would have been payable to the deceased on the date of death,
13 regardless of the age of the deceased on such date. If the
14 minimum total benefit provided by this subsection exceeds the
15 maximum otherwise imposed by this Section, the minimum total
16 benefit shall nevertheless be payable. Any increase in the
17 total survivors annuity benefit resulting from the operation
18 of this subsection shall be divided among the survivors
19 annuity beneficiaries of the deceased in proportion to their
20 shares of the total survivors annuity benefit otherwise
21 payable under this Section.
22 (j) Any survivors annuity beneficiary whose annuity
23 terminates due to any condition specified in this Article
24 other than death shall be entitled to a refund of the excess,
25 if any, of the accumulated contributions of the member plus
26 credited interest over all payments to the member and
27 beneficiary or beneficiaries, exclusive of the single sum
28 payment of $1,000, provided no future survivors or
29 reversionary annuity benefits are payable.
30 (k) Upon the death of the last eligible recipient of a
31 survivors annuity the excess, if any, of the member's
32 accumulated contributions plus credited interest over all
33 annuity payments to the member and survivors exclusive of the
34 single sum payment of $1000, shall be paid to the named
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1 beneficiary of the last eligible survivor, or if none has
2 been named, to the estate of the last eligible survivor,
3 provided no reversionary annuity is payable.
4 (l) On January 1, 1981, any survivor who was receiving a
5 survivors annuity on or before January 1, 1971, shall have
6 his survivors annuity then being paid increased by 1% for
7 each full year which has elapsed from the date the annuity
8 began. On January 1, 1982, any survivor who began receiving
9 a survivor's annuity after January 1, 1971, but before
10 January 1, 1981, shall have his survivor's annuity then being
11 paid increased by 1% for each full year that has elapsed from
12 the date the annuity began. On January 1, 1987, any survivor
13 who began receiving a survivor's annuity on or before January
14 1, 1977, shall have the monthly survivor's annuity increased
15 by $1 for each full year which has elapsed since the date the
16 survivor's annuity began.
17 (l-5) On January 1, 1998, every survivor who began
18 receiving a survivor's annuity on or before January 1, 1991
19 shall have the monthly survivor's annuity increased by an
20 amount equal to 10¢ multiplied by the number of full years of
21 the deceased's creditable service multiplied by the number of
22 full years that have elapsed since the annuity began. Every
23 survivor who begins receiving a survivor's annuity after
24 January 1, 1991 and before the effective date of this
25 amendatory Act of 1997 shall have the monthly survivor's
26 annuity increased on the January 1 occurring on or next
27 following the seventh anniversary of the commencement of the
28 survivor's annuity, by an amount equal to 70¢ multiplied by
29 the number of full years of the deceased's creditable
30 service. The increase under this subsection shall be
31 included in the calculation of increases granted
32 simultaneously or thereafter under subsection (m).
33 (m) Beginning January 1, 1990, every survivor's annuity
34 shall be increased (1) on each January 1 occurring on or
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1 after the commencement of the annuity if the deceased member
2 died while receiving a retirement annuity, or (2) in other
3 cases, on each January 1 occurring on or after the first
4 anniversary of the commencement of the annuity, by an amount
5 equal to 3% of the current amount of the annuity, including
6 any previous increases under this Article. Such increases
7 shall apply without regard to whether the deceased member was
8 in service on or after the effective date of Public Act
9 86-1488, but shall not accrue for any period prior to January
10 1, 1990.
11 (Source: P.A. 86-273; 86-1488; 87-794.)
12 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
13 Sec. 15-136. Retirement annuities - Amount.
14 (a) The amount of the retirement annuity shall be
15 determined by whichever of the following rules is applicable
16 and provides the largest annuity:
17 Rule 1: The retirement annuity shall be 1.67% of final
18 rate of earnings for each of the first 10 years of service,
19 1.90% for each of the next 10 years of service, 2.10% for
20 each year of service in excess of 20 but not exceeding 30,
21 and 2.30% for each year in excess of 30; or for persons who
22 retire on or after the effective date of this amendatory Act
23 of 1997, 2.2% of the final rate of earnings for each year of
24 service.
25 Rule 2: The retirement annuity shall be the sum of the
26 following, determined from amounts credited to the
27 participant in accordance with the actuarial tables and the
28 prescribed rate of interest in effect at the time the
29 retirement annuity begins:
30 (i) The normal annuity which can be provided on an
31 actuarial equivalent basis, by the accumulated normal
32 contributions as of the date the annuity begins; and
33 (ii) an annuity from employer contributions of an
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1 amount which can be provided on an actuarially equivalent
2 basis from the accumulated normal contributions made by
3 the participant under Section 15-113.6 and Section
4 15-113.7 plus 1.4 times all other accumulated normal
5 contributions made by the participant.
6 Rule 3: The retirement annuity of a participant who is
7 employed at least one-half time during the period on which
8 his or her final rate of earnings is based, shall be equal to
9 the participant's years of service not to exceed 30,
10 multiplied by (1) $96 if the participant's final rate of
11 earnings is less than $3,500, (2) $108 if the final rate of
12 earnings is at least $3,500 but less than $4,500, (3) $120 if
13 the final rate of earnings is at least $4,500 but less than
14 $5,500, (4) $132 if the final rate of earnings is at least
15 $5,500 but less than $6,500, (5) $144 if the final rate of
16 earnings is at least $6,500 but less than $7,500, (6) $156 if
17 the final rate of earnings is at least $7,500 but less than
18 $8,500, (7) $168 if the final rate of earnings is at least
19 $8,500 but less than $9,500, and (8) $180 if the final rate
20 of earnings is $9,500 or more.
21 Rule 4: A participant who is at least age 50 and has 25
22 or more years of service as a police officer or firefighter,
23 and a participant who is age 55 or over and has at least 20
24 but less than 25 years of service as a police officer or
25 firefighter, shall be entitled to a retirement annuity of 2
26 1/4% of the final rate of earnings for each of the first 10
27 years of service as a police officer or firefighter, 2 1/2%
28 for each of the next 10 years of service as a police officer
29 or firefighter, and 2 3/4% for each year of service as a
30 police officer or firefighter in excess of 20. The
31 retirement annuity for all other service shall be computed
32 under Rule 1.
33 (b) The retirement annuity provided under Rules 1 and 3
34 above shall be reduced by 1/2 of 1% for each month the
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1 participant is under age 60 at the time of retirement.
2 However, this reduction shall not apply in the following
3 cases:
4 (1) For a disabled participant whose disability
5 benefits have been discontinued because he or she has
6 exhausted eligibility for disability benefits under
7 clause (6) (5) of Section 15-152;
8 (2) For a participant who has at least 35 years of
9 service; or
10 (3) For that portion of a retirement annuity which
11 has been provided on account of service of the
12 participant during periods when he or she performed the
13 duties of a police officer or firefighter, if these
14 duties were performed for at least 5 years immediately
15 preceding the date the retirement annuity is to begin.
16 (c) The maximum retirement annuity provided under Rules
17 1, 2, and 4 shall be the lesser of (1) the annual limit of
18 benefits as specified in Section 415 of the Internal Revenue
19 Code of 1986, as such Section may be amended from time to
20 time and as such benefit limits shall be adjusted by the
21 Commissioner of Internal Revenue, and (2) 75% of final rate
22 of earnings; however, this limitation of 75% of final rate of
23 earnings shall not apply to a person who is a participant or
24 annuitant on September 15, 1977 if it results in a retirement
25 annuity less than that which is payable to the annuitant or
26 which would have been payable to the participant under the
27 provisions of this Article in effect on June 30, 1977.
28 (d) An annuitant whose status as an employee terminates
29 after August 14, 1969 shall receive automatic increases in
30 his or her retirement annuity as follows:
31 Effective January 1 immediately following the date the
32 retirement annuity begins, the annuitant shall receive an
33 increase in his or her monthly retirement annuity of 0.125%
34 of the monthly retirement annuity provided under Rule 1, Rule
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1 2, Rule 3, or Rule 4, contained in this Section, multiplied
2 by the number of full months which elapsed from the date the
3 retirement annuity payments began to January 1, 1972, plus
4 0.1667% of such annuity, multiplied by the number of full
5 months which elapsed from January 1, 1972, or the date the
6 retirement annuity payments began, whichever is later, to
7 January 1, 1978, plus 0.25% of such annuity multiplied by the
8 number of full months which elapsed from January 1, 1978, or
9 the date the retirement annuity payments began, whichever is
10 later, to the effective date of the increase.
11 The annuitant shall receive an increase in his or her
12 monthly retirement annuity on each January 1 thereafter
13 during the annuitant's life of 3% of the monthly annuity
14 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
15 this Section. The change made under this subsection by P.A.
16 81-970 is effective January 1, 1980 and applies to each
17 annuitant whose status as an employee terminates before or
18 after that date.
19 Beginning January 1, 1990, all automatic annual increases
20 payable under this Section shall be calculated as a
21 percentage of the total annuity payable at the time of the
22 increase, including all increases previously granted under
23 this Article. The change made in this subsection by P.A.
24 85-1008 is effective January 26, 1988, and is applicable
25 without regard to whether status as an employee terminated
26 before that date.
27 (e) If, on January 1, 1987, or the date the retirement
28 annuity payment period begins, whichever is later, the sum of
29 the retirement annuity provided under Rule 1 or Rule 2 of
30 this Section and the automatic annual increases provided
31 under the preceding subsection or Section 15-136.1, amounts
32 to less than the retirement annuity which would be provided
33 by Rule 3, the retirement annuity shall be increased as of
34 January 1, 1987, or the date the retirement annuity payment
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1 period begins, whichever is later, to the amount which would
2 be provided by Rule 3 of this Section. Such increased amount
3 shall be considered as the retirement annuity in determining
4 benefits provided under other Sections of this Article. This
5 paragraph applies without regard to whether status as an
6 employee terminated before the effective date of this
7 amendatory Act of 1987, provided that the annuitant was
8 employed at least one-half time during the period on which
9 the final rate of earnings was based.
10 (f) A participant is entitled to such additional annuity
11 as may be provided on an actuarial equivalent basis, by any
12 accumulated additional contributions to his or her credit.
13 However, the additional contributions made by the participant
14 toward the automatic increases in annuity provided under this
15 Section shall not be taken into account in determining the
16 amount of such additional annuity.
17 (g) If, (1) by law, a function of a governmental unit,
18 as defined by Section 20-107 of this Code, is transferred in
19 whole or in part to an employer, and (2) a participant
20 transfers employment from such governmental unit to such
21 employer within 6 months after the transfer of the function,
22 and (3) the sum of (A) the annuity payable to the participant
23 under Rule 1, 2, or 3 of this Section (B) all proportional
24 annuities payable to the participant by all other retirement
25 systems covered by Article 20, and (C) the initial primary
26 insurance amount to which the participant is entitled under
27 the Social Security Act, is less than the retirement annuity
28 which would have been payable if all of the participant's
29 pension credits validated under Section 20-109 had been
30 validated under this system, a supplemental annuity equal to
31 the difference in such amounts shall be payable to the
32 participant.
33 (h) On January 1, 1981, an annuitant who was receiving a
34 retirement annuity on or before January 1, 1971 shall have
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1 his or her retirement annuity then being paid increased $1
2 per month for each year of creditable service. On January 1,
3 1982, an annuitant whose retirement annuity began on or
4 before January 1, 1977, shall have his or her retirement
5 annuity then being paid increased $1 per month for each year
6 of creditable service.
7 (i) On January 1, 1987, any annuitant whose retirement
8 annuity began on or before January 1, 1977, shall have the
9 monthly retirement annuity increased by an amount equal to 8¢
10 per year of creditable service times the number of years that
11 have elapsed since the annuity began.
12 (j) On January 1, 1998, every annuitant who began
13 receiving a retirement annuity on or before January 1, 1991
14 shall have the monthly retirement annuity increased by an
15 amount equal to 10¢ multiplied by the number of full years of
16 creditable service multiplied by the number of full years
17 that have elapsed since the annuity began. Every annuitant
18 who begins receiving a retirement annuity after January 1,
19 1991 and before the effective date of this amendatory Act of
20 1997 shall have the monthly retirement annuity increased on
21 the January 1 occurring on or next following the seventh
22 anniversary of retirement, by an amount equal to 70¢
23 multiplied by the number of full years of creditable service
24 upon which the retirement annuity is based. The increase
25 under this subsection shall be included in the calculation of
26 increases granted simultaneously or thereafter under
27 subsection (d).
28 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
29 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
30 Sec. 15-145. Survivors insurance benefits; Conditions
31 and amounts.
32 (a) The survivors insurance benefits provided under this
33 Section shall be payable upon the death of (1) a
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1 participating employee with at least 1 1/2 years of service,
2 (2) a participant who terminated employment with at least 10
3 years of service, and (3) an annuitant in receipt of a
4 retirement annuity or disability retirement annuity under
5 this Article.
6 Service under the State Employees' Retirement System of
7 Illinois, the Teachers' Retirement System of the State of
8 Illinois and the Public School Teacher's Pension and
9 Retirement Fund of Chicago shall be considered in determining
10 eligibility for survivors benefits under this Section.
11 If by law, a function of a governmental unit, as defined
12 by Section 20-107, is transferred in whole or in part to an
13 employer, and an employee transfers employment from this
14 governmental unit to such employer within 6 months after the
15 transfer of this function, the service credits in the
16 governmental unit's retirement system which have been
17 validated under Section 20-109 shall be considered in
18 determining eligibility for survivors benefits under this
19 Section.
20 (b) A surviving spouse of a deceased participant, or of
21 a deceased annuitant who had a survivors insurance
22 beneficiary at the time of retirement, shall receive a
23 survivors annuity of 30% of the final rate of earnings.
24 Payments shall begin on the day following the participant's
25 or annuitant's death or the date the surviving spouse attains
26 age 50, whichever is later, and continue until the death of
27 the surviving spouse. The annuity shall be payable to the
28 surviving spouse prior to attainment of age 50 if the
29 surviving spouse has in his or her care a deceased
30 participant's or annuitant's dependent unmarried child under
31 age 18 who is eligible for a survivors annuity. Remarriage
32 of a surviving spouse prior to attainment of age 55 shall
33 disqualify him or her for the receipt of a survivors annuity.
34 (c) Each dependent unmarried child under age 18 of a
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1 deceased participant, or of a deceased annuitant who had a
2 survivors insurance beneficiary at the time of his or her
3 retirement, shall receive a survivors annuity equal to the
4 sum of (1) 20% of the final rate of earnings, and (2) 10% of
5 the final rate of earnings divided by the number of children
6 entitled to this benefit. Payments shall begin on the day
7 following the participant's or annuitant's death and continue
8 until the child marries, dies or attains age 18. If the child
9 is in the care of a surviving spouse who is eligible for
10 survivors insurance benefits, the child's benefit shall be
11 paid to the surviving spouse.
12 Each unmarried child over age 18 of a deceased
13 participant or of a deceased annuitant who had a survivor's
14 insurance beneficiary at the time of his or her retirement,
15 and who was dependent upon the participant or annuitant by
16 reason of a physical or mental disability which began prior
17 to the date the child attained age 18, shall receive a
18 survivor's annuity equal to the sum of (1) 20% of the final
19 rate of earnings, and (2) 10% of the final rate of earnings
20 divided by the number of children entitled to survivors
21 benefits. Payments shall begin on the day following the
22 participant's or annuitant's death and continue until the
23 child marries, dies or is no longer disabled. If the child
24 is in the care of a surviving spouse who is eligible for
25 survivors insurance benefits, the child's benefit may be paid
26 to the surviving spouse. For the purposes of this Section,
27 disability means inability to engage in any substantial
28 gainful activity by reason of any medically determinable
29 physical or mental impairment that can be expected to result
30 in death or that has lasted or can be expected to last for a
31 continuous period of at least one year.
32 (d) Each dependent parent of a deceased participant, or
33 of a deceased annuitant who had a survivors insurance
34 beneficiary at the time of his or her retirement, shall
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1 receive a survivors annuity equal to the sum of (1) 20% of
2 final rate of earnings, and (2) 10% of final rate of earnings
3 divided by the number of parents who qualify for the benefit.
4 Payments shall begin when the parent reaches age 55 or the
5 day following the participant's or annuitant's death,
6 whichever is later, and continue until the parent dies.
7 Remarriage of a parent prior to attainment of age 55 shall
8 disqualify the parent for the receipt of a survivors annuity.
9 (e) In addition to the survivors annuity provided above,
10 each survivors insurance beneficiary shall, upon death of the
11 participant or annuitant, receive a lump sum payment of
12 $1,000 divided by the number of such beneficiaries.
13 (f) The changes made in this Section by Public Act
14 81-712 pertaining to survivors annuities in cases of
15 remarriage prior to age 55 shall apply to each survivors
16 insurance beneficiary who remarries after June 30, 1979,
17 regardless of the date that the participant or annuitant
18 terminated his employment or died.
19 (g) On January 1, 1981, any person who was receiving a
20 survivors annuity on or before January 1, 1971 shall have the
21 survivors annuity then being paid increased by 1% for each
22 full year which has elapsed from the date the annuity began.
23 On January 1, 1982, any survivor whose annuity began after
24 January 1, 1971, but before January 1, 1981, shall have the
25 survivor's annuity then being paid increased by 1% for each
26 year which has elapsed from the date the survivor's annuity
27 began. On January 1, 1987, any survivor who began receiving a
28 survivor's annuity on or before January 1, 1977, shall have
29 the monthly survivor's annuity increased by $1 for each full
30 year which has elapsed since the date the survivor's annuity
31 began.
32 (g-1) On January 1, 1998, every survivor who began
33 receiving a survivor's annuity on or before January 1, 1991
34 shall have the monthly survivor's annuity increased by an
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1 amount equal to 10¢ multiplied by the number of full years of
2 the deceased's creditable service multiplied by the number of
3 full years that have elapsed since the survivor's annuity
4 began. Every survivor who begins receiving a survivor's
5 annuity after January 1, 1991 and before the effective date
6 of this amendatory Act of 1997 shall have the monthly
7 survivor's annuity increased on the January 1 occurring on or
8 next following the seventh anniversary of the commencement of
9 the survivor's annuity, by an amount equal to 70¢ multiplied
10 by the number of full years of the deceased's creditable
11 service. The increase under this subsection shall be
12 included in the calculation of increases granted
13 simultaneously or thereafter under subsection (j).
14 (h) If the sum of the lump sum and total monthly
15 survivor benefits payable under this Section upon the death
16 of a participant amounts to less than the sum of the death
17 benefits payable under items (2) and (3) of Section 15-141,
18 the difference shall be paid in a lump sum to the beneficiary
19 of the participant who is living on the date that this
20 additional amount becomes payable.
21 (i) If the sum of the lump sum and total monthly
22 survivor benefits payable under this Section upon the death
23 of an annuitant receiving a retirement annuity or disability
24 retirement annuity amounts to less than the death benefit
25 payable under Section 15-142, the difference shall be paid to
26 the beneficiary of the annuitant who is living on the date
27 that this additional amount becomes payable.
28 (j) Effective on the later of (1) January 1, 1990, or
29 (2) the January 1 on or next after the date on which the
30 survivor annuity begins, if the deceased member died while
31 receiving a retirement annuity, or in all other cases the
32 January 1 nearest the first anniversary of the date the
33 survivor annuity payments begin, every survivors insurance
34 beneficiary shall receive an increase in his or her monthly
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1 survivors annuity of 3%. On each January 1 after the initial
2 increase, the monthly survivors annuity shall be increased by
3 3% of the total survivors annuity provided under this
4 Article, including previous increases provided by this
5 subsection. Such increases shall apply to the survivors
6 insurance beneficiaries of each participant and annuitant,
7 whether or not the employment status of the participant or
8 annuitant terminates before the effective date of this
9 amendatory Act of 1990.
10 (k) If the Internal Revenue Code of 1986, as amended,
11 requires that the survivors benefits be payable at an age
12 earlier than that specified in this Section the benefits
13 shall begin at the earlier age, in which event, the
14 survivor's beneficiary shall be entitled only to that amount
15 which is equal to the actuarial equivalent of the benefits
16 provided by this Section.
17 (Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
18 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
19 Sec. 16-133. Retirement annuity; amount.
20 (a) The amount of the retirement annuity shall be the
21 larger of the amounts determined under paragraphs (A) and (B)
22 below:
23 (A) An amount consisting of the sum of the
24 following:
25 (1) An amount that can be provided on an
26 actuarially equivalent basis by the member's
27 accumulated contributions at the time of retirement;
28 and
29 (2) The sum of (i) the amount that can be
30 provided on an actuarially equivalent basis by the
31 member's accumulated contributions representing
32 service prior to July 1, 1947, and (ii) the amount
33 that can be provided on an actuarially equivalent
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1 basis by the amount obtained by multiplying 1.4
2 times the member's accumulated contributions
3 covering service subsequent to June 30, 1947; and
4 (3) If there is prior service, 2 times the
5 amount that would have been determined under
6 subparagraph (2) of paragraph (A) above on account
7 of contributions which would have been made during
8 the period of prior service creditable to the member
9 had the System been in operation and had the member
10 made contributions at the contribution rate in
11 effect prior to July 1, 1947.
12 (B) An amount consisting of the greatest greater of
13 the following:
14 (1) 1.67% of final average salary for each of
15 the first 10 years of creditable service, l.90% of
16 final average salary for each year in excess of 10
17 but not exceeding 20, 2.10% of final average salary
18 for each year in excess of 20 but not exceeding 30,
19 and 2.30% of final average salary for each year in
20 excess of 30; and
21 (2) for persons who retire on or after the
22 effective date of this amendatory Act of 1997, 2.2%
23 of final average salary for each year of service;
24 (3) 1 1/2% of final average salary for each
25 year of creditable service plus the sum $7.50 for
26 each of the first 20 years of creditable service.
27 The amount of the retirement annuity determined
28 under this paragraph (B) shall be reduced by 1/2 of 1%
29 for each month that the member is less than age 60 at the
30 time the retirement annuity begins. However, this
31 reduction shall not apply (i) if the member has at least
32 35 years of creditable service, or (ii) if the member
33 retires on account of disability under Section 16-149.2
34 of this Article with at least 20 years of creditable
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1 service.
2 (b) For purposes of this Section, final average salary
3 shall be the average salary for the highest 4 consecutive
4 years within the last 10 years of creditable service as
5 determined under rules of the board. The minimum final
6 average salary shall be considered to be $2,400 per year.
7 In the determination of final average salary for members
8 other than elected officials and their appointees when such
9 appointees are allowed by statute, that part of a member's
10 salary for any year beginning after June 30, 1979 which
11 exceeds the member's annual full-time salary rate with the
12 same employer for the preceding year by more than 20% shall
13 be excluded.
14 (c) In determining the amount of the retirement annuity
15 under paragraph (B) of this Section, a fractional year shall
16 be granted proportional credit.
17 (d) The retirement annuity determined under paragraph
18 (B) of this Section shall be available only to members who
19 render teaching service after July 1, 1947 for which member
20 contributions are required, and to annuitants who re-enter
21 under the provisions of Section 16-150.
22 (e) The maximum retirement annuity provided under
23 paragraph (B) of this Section shall be 75% of final average
24 salary.
25 (Source: P.A. 86-273; 87-794; 87-1265.)
26 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
27 Sec. 16-133.1. Automatic annual increase in annuity.
28 (a) Each member with creditable service and retiring on
29 or after August 26, 1969 is entitled to the automatic annual
30 increases in annuity provided under this Section while
31 receiving a retirement annuity or disability retirement
32 annuity from the system.
33 An annuitant shall first be entitled to an initial
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1 increase under this Section on the January 1 next following
2 the first anniversary of retirement, or January 1 of the year
3 next following attainment of age 61, whichever is later. At
4 such time, the system shall pay an initial increase
5 determined as follows: 1.5% of the originally granted
6 retirement annuity or disability retirement annuity
7 multiplied by the number of years elapsed from the later of
8 (1) attainment of age 55, or (2) the date of retirement,
9 until January 1, 1972, plus 2% of the originally granted
10 annuity multiplied by the number of years elapsed between
11 January 1, 1972 and January 1, 1978, plus 3% of the
12 originally granted annuity multiplied by the number of years
13 elapsed between January 1, 1978 and the effective date of the
14 initial increase. However, the initial annual increase
15 calculated under this Section for the recipient of a
16 disability retirement annuity granted under Section 16-149.2
17 shall be reduced by an amount equal to the total of all
18 increases in that annuity received under Section 16-149.5
19 (but not exceeding 100% of the amount of the initial increase
20 otherwise provided under this Section).
21 Following the initial increase, automatic annual
22 increases in annuity shall be payable on each January 1
23 thereafter during the lifetime of the annuitant, determined
24 as a percentage of the originally granted retirement annuity
25 or disability retirement annuity for increases granted prior
26 to January 1, 1990, and calculated as a percentage of the
27 total amount of annuity, including previous increases under
28 this Section, for increases granted on or after January 1,
29 1990, as follows: 1.5% for periods prior to January 1, 1972,
30 2% for periods after December 31, 1971 and prior to January
31 1, 1978, and 3% for periods after December 31, 1977.
32 (b) The automatic annual increases in annuity provided
33 under this Section shall not be applicable unless a member
34 has made contributions toward such increases for a period
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1 equivalent to one full year of creditable service. If a
2 member contributes for service performed after August 26,
3 1969 but the member becomes an annuitant before such
4 contributions amount to one full year's contributions based
5 on the salary at the date of retirement, he or she may pay
6 the necessary balance of the contributions to the system and
7 be eligible for the automatic annual increases in annuity
8 provided under this Section.
9 (c) Each member shall make contributions toward the cost
10 of the automatic annual increases in annuity as provided
11 under Section 16-152.
12 (d) An annuitant receiving a retirement annuity or
13 disability retirement annuity on July 1, 1969, who
14 subsequently re-enters service as a teacher is eligible for
15 the automatic annual increases in annuity provided under this
16 Section if he or she renders at least one year of creditable
17 service following the latest re-entry.
18 (e) In addition to the automatic annual increases in
19 annuity provided under this Section, an annuitant who meets
20 the service requirements of this Section and whose retirement
21 annuity or disability retirement annuity began on or before
22 January 1, 1971 shall receive, on January 1, 1981, an
23 increase in the annuity then being paid of one dollar per
24 month for each year of creditable service. On January 1,
25 1982, an annuitant whose retirement annuity or disability
26 retirement annuity began on or before January 1, 1977 shall
27 receive an increase in the annuity then being paid of one
28 dollar per month for each year of creditable service.
29 On January 1, 1987, any annuitant whose retirement
30 annuity began on or before January 1, 1977, shall receive an
31 increase in the monthly retirement annuity equal to 8¢ per
32 year of creditable service times the number of years that
33 have elapsed since the annuity began.
34 (f) On January 1, 1998, every annuitant who began
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1 receiving a retirement annuity on or before January 1, 1991
2 shall have the monthly retirement annuity increased by an
3 amount equal to 10¢ multiplied by the number of full years of
4 creditable service multiplied by the number of full years
5 that have elapsed since the annuity began. Every annuitant
6 who begins receiving a retirement annuity after January 1,
7 1991 and before the effective date of this amendatory Act of
8 1997 shall have the monthly retirement annuity increased on
9 the January 1 occurring on or next following the seventh
10 anniversary of retirement, by an amount equal to 70¢
11 multiplied by the number of full years of creditable service
12 upon which the retirement annuity is based. The increase
13 under this subsection shall be included in the calculation of
14 increases granted simultaneously or thereafter under
15 subsection (a).
16 (Source: P.A. 86-273; 86-1488.)
17 (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
18 Sec. 16-143.1. Increase in survivor benefits.
19 (a) Beginning January 1, 1990, each survivor's benefit
20 and each reversionary annuity payable under Section 16-136
21 shall be increased by 3% of the currently payable amount
22 thereof (1) on each January 1 occurring on or after the
23 commencement of the annuity if the deceased teacher died
24 while receiving a retirement or disability retirement
25 annuity, or (2) in other cases, on each January 1 occurring
26 on or after the first anniversary of the granting of the
27 benefit, without regard to whether the deceased teacher was
28 in service on or after the effective date of this amendatory
29 Act of 1991, but such increases shall not accrue for any
30 period prior to January 1, 1990.
31 (b) On January 1, 1981, any beneficiary who was
32 receiving a survivor's monthly benefit on or before January
33 1, 1971, shall have the benefit then being paid increased by
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1 1% for each full year elapsed from the date the survivor's
2 benefit began. On January 1, 1982, any beneficiary who began
3 receiving a survivor's monthly benefit after January 1, 1971,
4 but before January 1, 1981 shall have the benefit then being
5 paid increased by 1% for each year elapsed from the date the
6 survivor's benefit began.
7 On January 1, 1987, any beneficiary whose monthly
8 survivor's benefit began on or before January 1, 1977, shall
9 have the monthly survivor's benefit increased by $1 for each
10 full year which has elapsed since the date the survivor's
11 benefit began.
12 (c) On January 1, 1998, every survivor who began
13 receiving a monthly survivor's benefit on or before January
14 1, 1991 shall have the monthly survivor's benefit increased
15 by an amount equal to 10¢ multiplied by the number of full
16 years of the deceased's creditable service multiplied by the
17 number of full years that have elapsed since the survivor's
18 benefit began. Every survivor who begins receiving a monthly
19 survivor's benefit after January 1, 1991 and before the
20 effective date of this amendatory Act of 1997 shall have the
21 monthly survivor's benefit increased on the January 1
22 occurring on or next following the seventh anniversary of the
23 commencement of the survivor's benefit, by an amount equal to
24 70¢ multiplied by the number of full years of the deceased's
25 creditable service. The increase under this subsection shall
26 be included in the calculation of increases granted
27 simultaneously or thereafter under subsection (a).
28 (Source: P.A. 86-273; 86-1488.)
29 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
30 Sec. 17-116. Service retirement pension. Each teacher
31 having 20 years of service upon attainment of age 55, or who
32 thereafter attains age 55 shall be entitled to a service
33 retirement pension upon or after attainment of age 55; and
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1 each teacher in service on or after July 1, 1971, with 5 or
2 more but less than 20 years of service shall be entitled to
3 receive a service retirement pension upon or after attainment
4 of age 62. Such pension is to be calculated as follows:
5 Beginning as of June 25, 1971, the service retirement
6 pension for a teacher who retires on or after such date but
7 before the effective date of this amendatory Act of 1997, at
8 age 60 or over, shall be 1.67% for each of the first 10 years
9 of service; 1.90% for each of the next 10 years of service;
10 2.10% for each year of service in excess of 20 but not
11 exceeding 30; and 2.30% for each year of service in excess of
12 30, based upon average salary as herein defined. The service
13 retirement pension for a teacher who retires on or after the
14 effective date of this amendatory Act of 1997 at age 60 or
15 over shall be 2.2% of average salary for each year of
16 service.
17 When computing such service retirement pensions, the
18 following conditions shall apply:
19 1. Average salary shall consist of the average annual
20 rate of salary for the 4 consecutive years of validated
21 service within the last 10 years of service when such average
22 annual rate was highest. In the determination of average
23 salary for retirement allowance purposes, for members who
24 commenced employment after August 31, 1979, that part of the
25 salary for any year shall be excluded which exceeds the
26 annual full-time salary rate for the preceding year by more
27 than 20%. In the case of a member who commenced employment
28 before August 31, 1979 and who receives salary during any
29 year after September 1, 1983 which exceeds the annual full
30 time salary rate for the preceding year by more than 20%, the
31 Board of Education or employer shall pay to the Fund an
32 amount equal to the present value of the additional service
33 retirement pension resulting from such excess salary. The
34 present value of the additional service retirement pension
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1 shall be computed by the Board on the basis of actuarial
2 tables adopted by the Board. If a member elects to receive a
3 pension from this fund provided by Section 20-121, his salary
4 under the State Universities Retirement System and the
5 Teachers' Retirement System of the State of Illinois shall be
6 considered in determining such average salary. Amounts paid
7 after the effective date of this amendatory Act of 1991 for
8 unused vacation time earned after that effective date shall
9 not under any circumstances be included in the calculation of
10 average salary or the annual rate of salary for the purposes
11 of this Article.
12 2. Proportionate credit shall be given for validated
13 service of less than one year.
14 3. For retirement at age 60 or over the pension shall be
15 payable at the full rate.
16 4. For separation from service below age 60 to a minimum
17 age of 55, the pension shall be discounted at the rate of
18 1/2 of one per cent for each month that the age of the
19 contributor is less than 60, but a teacher may elect to defer
20 the effective date of pension in order to eliminate or reduce
21 this discount. This discount shall not be applicable to any
22 participant who has at least 35 years of service on the date
23 the retirement annuity begins.
24 5. No additional pension shall be granted for service
25 exceeding 45 years. Beginning June 26, 1971 no pension shall
26 exceed the greater of $1,500 per month or 75% of average
27 salary as herein defined.
28 6. Service retirement pensions shall begin on the
29 effective date of resignation, retirement, the day following
30 the close of the payroll period for which service credit was
31 validated, or the time the person resigning or retiring
32 attains age 55, or on a date elected by the teacher,
33 whichever shall be latest.
34 (Source: P.A. 86-1488.)
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1 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
2 Sec. 17-119. Automatic annual increase in pension.
3 (a) Each teacher retiring on or after September 1, 1959,
4 is entitled to the annual increase in pension, defined
5 herein, while he is receiving a pension from the fund.
6 1. The term "base pension" means a service retirement or
7 disability retirement pension in the amount fixed and payable
8 at the date of retirement of a teacher.
9 2. The annual increase in pension shall be at the rate
10 of 1 1/2% of base pension. This increase shall first occur
11 in January of the year next following the first anniversary
12 of retirement. At such time the fund shall pay the pro rata
13 part of the increase for the period from the first
14 anniversary date to the date of the first increase in
15 pension. Beginning January 1, 1972, the rate of annual
16 increase in pension shall be 2% of the base pension.
17 Beginning January 1, 1979, the rate of annual increase in
18 pension shall be 3% of the base pension. Beginning January
19 1, 1990, all automatic annual increases payable under this
20 Section shall be calculated as a percentage of the total
21 pension payable at the time of the increase, including all
22 increases previously granted under this Article,
23 notwithstanding Section 17-157.
24 3. An increase in pension shall be granted only if the
25 retired teacher is age 60 or over. If the teacher attains age
26 60 after retirement, the increase in pension shall begin in
27 January of the year following the 61st birthday. At such time
28 the fund also shall pay the pro rata part of the increase
29 from the 61st birthday to the date of first increase in
30 pension.
31 (b) In addition to other increases which may be provided
32 by this Section, on January 1, 1981 any teacher who was
33 receiving a retirement pension on or before January 1, 1971
34 shall have his retirement pension then being paid increased
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1 $1 per month for each year of creditable service. On January
2 1, 1982, any teacher whose retirement pension began on or
3 before January 1, 1977, shall have his retirement pension
4 then being paid increased $1 per month for each year of
5 creditable service.
6 On January 1, 1987, any teacher whose retirement pension
7 began on or before January 1, 1977, shall have the monthly
8 retirement pension increased by an amount equal to 8¢ per
9 year of creditable service times the number of years that
10 have elapsed since the retirement pension began.
11 (c) On January 1, 1998, every pensioner who began
12 receiving a retirement pension on or before January 1, 1991
13 shall have the monthly retirement pension increased by an
14 amount equal to 10¢ multiplied by the number of full years of
15 creditable service multiplied by the number of full years
16 that have elapsed since the pension began. Every pensioner
17 who begins receiving a retirement pension after January 1,
18 1991 and before the effective date of this amendatory Act of
19 1997 shall have the monthly retirement pension increased on
20 the January 1 occurring on or next following the seventh
21 anniversary of retirement, by an amount equal to 70¢
22 multiplied by the number of full years of creditable service
23 upon which the retirement pension is based. The increase
24 under this subsection shall be included in the calculation of
25 increases granted simultaneously or thereafter under
26 subsection (a). Section 17-157 does not apply to the increase
27 provided under this subsection.
28 (Source: P.A. 86-273.)
29 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
30 Sec. 17-122. Survivor's and children's pensions -
31 Amount.
32 (a) Upon the death of a teacher who has completed at
33 least 1 1/2 years of contributing service with either this
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1 Fund or the State Universities Retirement System or the
2 Teachers' Retirement System of the State of Illinois,
3 provided his death occurred while (a) in active service
4 covered by the fund or during his first 18 months of
5 continuous employment without a break in service under any
6 other participating system as defined in the Illinois
7 Retirement Systems Reciprocal Act except the State
8 Universities Retirement System and the Teachers' Retirement
9 System of the State of Illinois, (b) on a creditable leave of
10 absence, (c) on a noncreditable leave of absence of no more
11 than one year, or (d) a pension was deferred or pending
12 provided the teacher had at least 10 years of validated
13 service credit, or upon the death of a pensioner otherwise
14 qualified for such benefit, the surviving spouse and
15 unmarried minor children of the deceased teacher under age 18
16 shall be entitled to pensions, under the conditions stated
17 hereinafter. Such survivor's and children's pensions shall
18 be based on the average of the 4 highest consecutive years of
19 salary in the last 10 years of service or on the average
20 salary for total service, if total service has been less than
21 4 years, according to the following percentages:
22 30% of average salary or 50% of the retirement
23 pension earned by the teacher, whichever is larger,
24 subject to the prescribed maximum monthly payment, for a
25 surviving spouse alone on attainment of age 50;
26 60% of average salary for a surviving spouse and
27 eligible minor children of the deceased teacher.
28 If no eligible spouse survives, or the surviving spouse
29 remarries, or the parent of the children of the deceased
30 member is otherwise ineligible for a survivor's pension, a
31 children's pension for eligible minor children under age 18
32 shall be paid to their parent or legal guardian for their
33 benefit according to the following percentages:
34 30% of average salary for one child;
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1 60% of average salary for 2 or more children.
2 (b) On January 1, 1981, any survivor or child who was
3 receiving a survivor's or children's pension on or before
4 January 1, 1971, shall have his survivor's or children's
5 pension then being paid increased by 1% for each full year
6 which has elapsed from the date the pension began. On January
7 1, 1982, any survivor or child whose pension began after
8 January 1, 1971, but before January 1, 1981, shall have his
9 survivor's or children's pension then being paid increased 1%
10 for each full year which has elapsed from the date the
11 pension began. On January 1, 1987, any survivor or child
12 whose pension began on or before January 1, 1977, shall have
13 the monthly survivor's or children's pension increased by $1
14 for each full year which has elapsed since the pension began.
15 (c) On January 1, 1998, every survivor or child who
16 began receiving a monthly survivor's or children's pension on
17 or before January 1, 1991 shall have the monthly pension
18 increased by an amount equal to 10¢ multiplied by the number
19 of full years of the deceased's creditable service multiplied
20 by the number of full years that have elapsed since the
21 survivor's or children's pension began. Every survivor or
22 child who begins receiving a monthly survivor's or children's
23 pension after January 1, 1991 and before the effective date
24 of this amendatory Act of 1997 shall have the monthly pension
25 increased on the January 1 occurring on or next following the
26 seventh anniversary of the commencement of the pension, by an
27 amount equal to 70¢ multiplied by the number of full years of
28 the deceased's creditable service. The increase under this
29 subsection shall be included in the calculation of increases
30 granted simultaneously or thereafter under subsection (d).
31 Section 17-157 does not apply to the increase provided under
32 this subsection.
33 (d) Beginning January 1, 1990, every survivor's and
34 children's pension shall be increased (1) on each January 1
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1 occurring on or after the commencement of the pension if the
2 deceased teacher died while receiving a retirement pension,
3 or (2) in other cases, on each January 1 occurring on or
4 after the first anniversary of the commencement of the
5 pension, by an amount equal to 3% of the current amount of
6 the pension, including all increases previously granted under
7 this Article, notwithstanding Section 17-157. Such increases
8 shall apply without regard to whether the deceased teacher
9 was in service on or after the effective date of this
10 amendatory Act of 1991, but shall not accrue for any period
11 prior to January 1, 1990.
12 (e) Subject to the minimum established below, the
13 maximum amount of pension for a surviving spouse alone or one
14 minor child shall be $400 per month, and the maximum combined
15 pensions for a surviving spouse and children of the deceased
16 teacher shall be $600 per month, with individual pensions
17 adjusted for all beneficiaries pro rata to conform with this
18 limitation. If proration is unnecessary the minimum
19 survivor's and children's pensions shall be $40 per month.
20 The minimum total survivor's pension payable upon the death
21 of a contributor or annuitant which occurs after December 31,
22 1986, shall be 50% of the earned retirement pension of such
23 contributor or annuitant, calculated without early retirement
24 discount in the case of death in service.
25 On death after retirement, the total survivor's and
26 children's pensions shall not exceed the monthly retirement
27 or disability pension paid to the deceased retirant.
28 Survivor's and children's benefits described in this Section
29 shall apply to all service and disability pensioners eligible
30 for a pension as of July 1, 1981.
31 (Source: P.A. 86-273; 86-1488.)
32 Section 90. The State Mandates Act is amended by adding
33 Section 8.21 as follows:
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1 (30 ILCS 805/8.21 new)
2 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1997.
6 Section 95. No acceleration or delay. Where this Act
7 makes changes in a statute that is represented in this Act by
8 text that is not yet or no longer in effect (for example, a
9 Section represented by multiple versions), the use of that
10 text does not accelerate or delay the taking effect of (i)
11 the changes made by this Act or (ii) provisions derived from
12 any other Public Act.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.