State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


[ Engrossed ][ House Amendment 001 ][ House Amendment 002 ]
[ House Amendment 003 ]

90_SB0667

      40 ILCS 5/15-136          from Ch. 108 1/2, par. 15-136
          Amends the Universities Article of the Pension Code.   In
      a  Section  on  retirement  annuities,  corrects an incorrect
      cross reference.  Effective immediately.
                                                     LRB9000609EGfg
                                               LRB9000609EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 15-136.
 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 Section 15-136 as follows:
 7        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
 8        Sec. 15-136.  Retirement annuities - Amount.
 9        (a)  The  amount  of  the  retirement  annuity  shall  be
10    determined  by whichever of the following rules is applicable
11    and provides the largest annuity:
12        Rule 1:  The retirement annuity shall be 1.67%  of  final
13    rate  of  earnings for each of the first 10 years of service,
14    1.90% for each of the next 10 years  of  service,  2.10%  for
15    each  year  of  service in excess of 20 but not exceeding 30,
16    and 2.30% for each year in excess of 30.
17        Rule 2:  The retirement annuity shall be the sum  of  the
18    following,   determined   from   amounts   credited   to  the
19    participant in accordance with the actuarial tables  and  the
20    prescribed  rate  of  interest  in  effect  at  the  time the
21    retirement annuity begins:
22             (i)  The normal annuity which can be provided on  an
23        actuarial  equivalent  basis,  by  the accumulated normal
24        contributions as of the date the annuity begins; and
25             (ii)  an annuity from employer contributions  of  an
26        amount which can be provided on an actuarially equivalent
27        basis  from  the accumulated normal contributions made by
28        the  participant  under  Section  15-113.6  and   Section
29        15-113.7  plus  1.4  times  all  other accumulated normal
30        contributions made by the participant.
31        Rule 3:  The retirement annuity of a participant  who  is
                            -2-                LRB9000609EGfg
 1    employed  at  least  one-half time during the period on which
 2    his or her final rate of earnings is based, shall be equal to
 3    the  participant's  years  of  service  not  to  exceed   30,
 4    multiplied  by  (1)  $96  if  the participant's final rate of
 5    earnings is less than $3,500, (2) $108 if the final  rate  of
 6    earnings is at least $3,500 but less than $4,500, (3) $120 if
 7    the  final  rate of earnings is at least $4,500 but less than
 8    $5,500, (4) $132 if the final rate of earnings  is  at  least
 9    $5,500  but  less  than $6,500, (5) $144 if the final rate of
10    earnings is at least $6,500 but less than $7,500, (6) $156 if
11    the final rate of earnings is at least $7,500 but  less  than
12    $8,500,  (7)  $168  if the final rate of earnings is at least
13    $8,500 but less than $9,500, and (8) $180 if the  final  rate
14    of earnings is $9,500 or more.
15        Rule  4:  A participant who is at least age 50 and has 25
16    or more years of service as a police officer or  firefighter,
17    and  a  participant who is age 55 or over and has at least 20
18    but less than 25 years of service  as  a  police  officer  or
19    firefighter,  shall  be entitled to a retirement annuity of 2
20    1/4% of the final rate of earnings for each of the  first  10
21    years  of  service as a police officer or firefighter, 2 1/2%
22    for each of the next 10 years of service as a police  officer
23    or  firefighter,  and  2  3/4%  for each year of service as a
24    police  officer  or  firefighter  in  excess  of   20.    The
25    retirement  annuity  for  all other service shall be computed
26    under Rule 1.
27        (b)  The retirement annuity provided under Rules 1 and  3
28    above  shall  be  reduced  by  1/2  of  1% for each month the
29    participant is under  age  60  at  the  time  of  retirement.
30    However,  this  reduction  shall  not  apply in the following
31    cases:
32             (1)  For a  disabled  participant  whose  disability
33        benefits  have  been  discontinued  because he or she has
34        exhausted  eligibility  for  disability  benefits   under
                            -3-                LRB9000609EGfg
 1        clause (6) (5) of Section 15-152;
 2             (2)  For  a participant who has at least 35 years of
 3        service; or
 4             (3)  For that portion of a retirement annuity  which
 5        has   been   provided   on  account  of  service  of  the
 6        participant during periods when he or she  performed  the
 7        duties  of  a  police  officer  or  firefighter, if these
 8        duties were performed for at least  5  years  immediately
 9        preceding the date the retirement annuity is to begin.
10        (c)  The  maximum retirement annuity provided under Rules
11    1, 2, and 4 shall be the lesser of (1) the  annual  limit  of
12    benefits  as specified in Section 415 of the Internal Revenue
13    Code of 1986, as such Section may be  amended  from  time  to
14    time  and  as  such  benefit  limits shall be adjusted by the
15    Commissioner of Internal Revenue, and (2) 75% of  final  rate
16    of earnings; however, this limitation of 75% of final rate of
17    earnings  shall not apply to a person who is a participant or
18    annuitant on September 15, 1977 if it results in a retirement
19    annuity less than that which is payable to the  annuitant  or
20    which  would  have  been payable to the participant under the
21    provisions of this Article in effect on June 30, 1977.
22        (d)  An annuitant whose status as an employee  terminates
23    after  August  14,  1969 shall receive automatic increases in
24    his or her retirement annuity as follows:
25        Effective January 1 immediately following  the  date  the
26    retirement  annuity  begins,  the  annuitant shall receive an
27    increase in his or her monthly retirement annuity  of  0.125%
28    of the monthly retirement annuity provided under Rule 1, Rule
29    2,  Rule  3, or Rule 4, contained in this Section, multiplied
30    by the number of full months which elapsed from the date  the
31    retirement  annuity  payments  began to January 1, 1972, plus
32    0.1667% of such annuity, multiplied by  the  number  of  full
33    months  which  elapsed  from January 1, 1972, or the date the
34    retirement annuity payments began,  whichever  is  later,  to
                            -4-                LRB9000609EGfg
 1    January 1, 1978, plus 0.25% of such annuity multiplied by the
 2    number  of full months which elapsed from January 1, 1978, or
 3    the date the retirement annuity payments began, whichever  is
 4    later, to the effective date of the increase.
 5        The  annuitant  shall  receive  an increase in his or her
 6    monthly retirement  annuity  on  each  January  1  thereafter
 7    during  the  annuitant's  life  of  3% of the monthly annuity
 8    provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
 9    this Section.  The change made under this subsection by  P.A.
10    81-970  is  effective  January  1,  1980  and applies to each
11    annuitant whose status as an employee  terminates  before  or
12    after that date.
13        Beginning January 1, 1990, all automatic annual increases
14    payable   under   this  Section  shall  be  calculated  as  a
15    percentage of the total annuity payable at the  time  of  the
16    increase,  including  all  increases previously granted under
17    this Article.
18        The change made in this subsection  by  P.A.  85-1008  is
19    effective  January 26, 1988, and is applicable without regard
20    to whether status as an employee terminated before that date.
21        (e)  If, on January 1, 1987, or the date  the  retirement
22    annuity payment period begins, whichever is later, the sum of
23    the  retirement  annuity  provided  under Rule 1 or Rule 2 of
24    this Section and  the  automatic  annual  increases  provided
25    under  the  preceding subsection or Section 15-136.1, amounts
26    to less than the retirement annuity which would  be  provided
27    by  Rule  3,  the retirement annuity shall be increased as of
28    January 1, 1987, or the date the retirement  annuity  payment
29    period  begins, whichever is later, to the amount which would
30    be provided by Rule 3 of this Section. Such increased  amount
31    shall  be considered as the retirement annuity in determining
32    benefits provided under other Sections of this Article.  This
33    paragraph applies without regard  to  whether  status  as  an
34    employee   terminated  before  the  effective  date  of  this
                            -5-                LRB9000609EGfg
 1    amendatory Act of  1987,  provided  that  the  annuitant  was
 2    employed  at  least  one-half time during the period on which
 3    the final rate of earnings was based.
 4        (f)  A participant is entitled to such additional annuity
 5    as may be provided on an actuarial equivalent basis,  by  any
 6    accumulated  additional  contributions  to his or her credit.
 7    However, the additional contributions made by the participant
 8    toward the automatic increases in annuity provided under this
 9    Section shall not be taken into account  in  determining  the
10    amount of such additional annuity.
11        (g)  If,  (1)  by law, a function of a governmental unit,
12    as defined by Section 20-107 of this Code, is transferred  in
13    whole  or  in  part  to  an  employer,  and (2) a participant
14    transfers employment from  such  governmental  unit  to  such
15    employer  within 6 months after the transfer of the function,
16    and (3) the sum of (A) the annuity payable to the participant
17    under Rule 1, 2, or 3 of this Section  (B)  all  proportional
18    annuities  payable to the participant by all other retirement
19    systems covered by Article 20, and (C)  the  initial  primary
20    insurance  amount  to which the participant is entitled under
21    the Social Security Act, is less than the retirement  annuity
22    which  would  have  been  payable if all of the participant's
23    pension credits  validated  under  Section  20-109  had  been
24    validated  under this system, a supplemental annuity equal to
25    the difference in  such  amounts  shall  be  payable  to  the
26    participant.
27        (h)  On January 1, 1981, an annuitant who was receiving a
28    retirement  annuity  on  or before January 1, 1971 shall have
29    his or her retirement annuity then being  paid  increased  $1
30    per  month for each year of creditable service. On January 1,
31    1982, an annuitant  whose  retirement  annuity  began  on  or
32    before  January  1,  1977,  shall  have his or her retirement
33    annuity then being paid increased $1 per month for each  year
34    of creditable service.
                            -6-                LRB9000609EGfg
 1        (i)  On  January  1, 1987, any annuitant whose retirement
 2    annuity began on or before January 1, 1977,  shall  have  the
 3    monthly retirement annuity increased by an amount equal to 8¢
 4    per year of creditable service times the number of years that
 5    have elapsed since the annuity began.
 6    (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
 7        Section  99.  Effective date.  This Act takes effect upon
 8    becoming law.

[ Top ]