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91_HB4083
LRB9110543EGfg
1 AN ACT to amend the Illinois Pension Code and the State
2 Mandates Act.
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 7-142 and 7-144.3 as follows:
7 (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
8 Sec. 7-142. Retirement annuities - Amount.
9 (a) The amount of a retirement annuity shall be the sum
10 of the following, determined in accordance with the actuarial
11 tables in effect at the time of the grant of the annuity:
12 1. For employees with 8 or more years of service,
13 an annuity computed pursuant to subparagraphs a or b of
14 this subparagraph 1, whichever is the higher, and for
15 employees with less than 8 years of service the annuity
16 computed pursuant to subparagraph a:
17 a. The monthly annuity which can be provided
18 from the total accumulated normal, municipality and
19 prior service credits, as of the attained age of the
20 employee on the date the annuity begins provided
21 that such annuity shall not exceed 75% of the final
22 rate of earnings of the employee.
23 b. (i) The monthly annuity amount determined
24 as follows by multiplying (a) 1 2/3% for annuitants
25 with not more than 15 years or (b) 1 2/3% for the
26 first 15 years and 2% for each year in excess of 15
27 years for annuitants with more than 15 years by the
28 number of years plus fractional years, prorated on a
29 basis of months, of creditable service and multiply
30 the product thereof by the employee's final rate of
31 earnings.
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1 (ii) For the sole purpose of computing the
2 formula (and not for the purposes of the limitations
3 hereinafter stated) $125 shall be considered the
4 final rate of earnings in all cases where the final
5 rate of earnings is less than such amount.
6 (iii) The monthly annuity computed in
7 accordance with this subparagraph b, shall not
8 exceed an amount equal to 75% of the final rate of
9 earnings.
10 (iv) For employees who have less than 35 years
11 of service, the annuity computed in accordance with
12 this subparagraph b (as reduced by application of
13 subparagraph (iii) above) shall be reduced by 0.25%
14 thereof (0.5% if service was terminated before
15 January 1, 1988) for each month or fraction thereof
16 (1) that the employee's age is less than 60 years,
17 or (2) if the employee has at least 30 years of
18 service credit, that the employee's service credit
19 is less than 35 years, whichever is less, on the
20 date the annuity begins.
21 2. The annuity which can be provided from the total
22 accumulated additional credits as of the attained age of
23 the employee on the date the annuity begins.
24 (b) If payment of an annuity begins prior to the
25 earliest age at which the employee will become eligible for
26 an old age insurance benefit under the Federal Social
27 Security Act, he may elect that the annuity payments from
28 this fund shall exceed those payable after his attaining such
29 age by an amount, computed as determined by rules of the
30 Board, but not in excess of his estimated Social Security
31 Benefit, determined as of the effective date of the annuity,
32 provided that in no case shall the total annuity payments
33 made by this fund exceed in actuarial value the annuity which
34 would have been payable had no such election been made.
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1 (c) The retirement annuity shall be increased each year
2 by 2%, not compounded, of the monthly amount of annuity,
3 taking into consideration any adjustment under paragraph (b)
4 of this Section. This increase shall be effective each
5 January 1 and computed from the effective date of the
6 retirement annuity, the first increase being .167% of the
7 monthly amount times the number of months from the effective
8 date to January 1. Beginning January 1, 1984 and thereafter,
9 the retirement annuity shall be increased by 3% each year,
10 not compounded; except that beginning January 1, 2001, in the
11 case of a retirement annuity that has been calculated in
12 whole or in part under Section 7-142.1, the increase provided
13 under this subsection shall be based upon the entire amount
14 of annuity payable at the time of the increase, including any
15 increases previously received under this subsection,
16 regardless of whether the annuitant was in service on or
17 after the effective date of this amendatory Act of the 91st
18 General Assembly.
19 This increase shall not be applicable to annuitants who
20 are not in service on or after September 8, 1971.
21 (Source: P.A. 91-357, eff. 7-29-99.)
22 (40 ILCS 5/7-144.3) (from Ch. 108 1/2, par. 7-144.3)
23 Sec. 7-144.3. Supplemental benefit payment.
24 (a) A supplemental benefit payment, consisting of a sum
25 calculated as provided in subsection (c), shall be payable to
26 each eligible retirement annuitant and surviving spouse
27 annuitant on July 1, 1993, and on each subsequent July 1;
28 except that if this Code is amended to change the
29 uncompounded annual increase in retirement annuity granted in
30 subsection (c) of Section 7-142 to a compounded annual
31 increase, no supplemental benefit shall be paid under this
32 Section on any July 1 occurring on or after the effective
33 date of that amendment. However, the compounding of annual
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1 increases for sheriff's law enforcement employees by this
2 amendatory Act of the 91st General Assembly shall be
3 disregarded for the purposes of this subsection.
4 The amount of the supplemental benefit payment, and a
5 person's eligibility to receive the supplemental benefit
6 payment, shall be redetermined for each year in which the
7 benefit is payable.
8 (b) To be eligible to receive a supplemental benefit
9 payment, a person must be entitled to receive a retirement
10 annuity or surviving spouse annuity from the Fund on the July
11 1 supplemental benefit payment date, and must have been
12 receiving that annuity during each of the 12 months
13 immediately preceding that date; except that a surviving
14 spouse annuitant whose surviving spouse annuity began less
15 than one year before the July 1 supplemental benefit payment
16 date shall be eligible if the deceased spouse received a
17 retirement annuity from the Fund during the period from the
18 previous July 1 until the start of the surviving spouse
19 annuity.
20 (c) The amount of the supplemental benefit payment shall
21 be determined by the Board as follows:
22 (1) The total amount available for the payment of
23 supplemental benefit payments under this Section in any
24 year shall be 0.62% of the last annual participating
25 payroll for all participating municipalities and
26 participating instrumentalities in the Fund, as
27 determined and reconciled by the Fund.
28 (2) The amount of the supplemental benefit payment
29 to each eligible person shall be a portion of the total
30 amount available under paragraph (1), equal to that
31 portion of the total amount payable by the Fund to all
32 eligible persons for retirement and surviving spouse
33 annuities in the June preceding the July 1 supplemental
34 benefit payment date, that is payable to the eligible
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1 person in that month.
2 (3) Notwithstanding paragraph (2), the amount of
3 any supplemental benefit payment paid to an annuitant
4 under this Section shall not exceed any benefit
5 limitations established by the federal government for
6 qualified public pension plans.
7 (Source: P.A. 87-850.)
8 Section 90. The State Mandates Act is amended by adding
9 Section 8.24 as follows:
10 (30 ILCS 805/8.24 new)
11 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
12 and 8 of this Act, no reimbursement by the State is required
13 for the implementation of any mandate created by this
14 amendatory Act of the 91st General Assembly.
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.