State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]


[ Engrossed ][ Enrolled ]

91_SB1020

 
                                               LRB9106091EGfg

 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections 18-125 and 18-133.

 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 18-125 and 18-133 as follows:

 7        (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
 8        Sec. 18-125.  Retirement annuity amount.
 9        (a)  The  annual retirement annuity for a participant who
10    terminated service as a judge prior to July 1, 1971 shall  be
11    based  on  the  law  in  effect at the time of termination of
12    service.
13        (b)  Effective July 1, 1971, the retirement  annuity  for
14    any  participant  in service on or after such date shall be 3
15    1/2% of final average salary, as defined in this Section, for
16    each of the first 10 years of service, and 5% of  such  final
17    average salary for each year of service on excess of 10.
18        For  purposes of this Section, final average salary shall
19    be:
20             (1)  the average salary for  the  last  4  years  of
21        credited  service  as  a  judge  for  a  participant  who
22        terminates service before July 1, 1975.
23             (2)  for  a participant who terminates service after
24        June 30, 1975 and before July 1, 1982, the salary on  the
25        last day of employment as a judge.
26             (3)  for  any  participant  who  terminates  service
27        after  June  30,  1982  and  before  January 1, 1990, the
28        average salary for the final year of service as a judge.
29             (4)  for a participant who terminates service on  or
30        after  January  1,  1990 but before the effective date of
31        this amendatory Act of 1995, the salary on the  last  day
 
                            -2-                LRB9106091EGfg
 1        of employment as a judge.
 2             (5)  for  a participant who terminates service on or
 3        after the effective date of this amendatory Act of  1995,
 4        the  salary  on the last day of employment as a judge, or
 5        the  highest  salary  received  by  the  participant  for
 6        employment  as  a  judge  in  a  position  held  by   the
 7        participant  for  at least 4 consecutive years, whichever
 8        is greater.
 9        However, in the case  of  a  participant  who  elects  to
10    discontinue  contributions  as provided in subdivision (a)(2)
11    of Section  18-133,  the  time  of  such  election  shall  be
12    considered the last day of employment in the determination of
13    final average salary under this subsection.
14        The  maximum retirement annuity for any participant shall
15    be 85% of final average salary.
16        (c)  The retirement annuity for a participant who retires
17    prior to age 60 with less than 28 years  of  service  in  the
18    System  shall  be  reduced  1/2 of 1% for each month that the
19    participant's age is under 60 years at the time  the  annuity
20    commences.   However,  for  a  participant  who retires on or
21    after the effective date of this amendatory Act of  the  91st
22    General  Assembly,  the  percentage  reduction  in retirement
23    annuity imposed under this subsection  shall  be  reduced  by
24    5/12  of  1%  for  every  month  of service in this System in
25    excess of 20 years, and therefore a participant with at least
26    26 years of service in this  System  may  retire  at  age  55
27    without any reduction in annuity.
28        The  reduction  in  retirement  annuity  imposed  by this
29    subsection shall not apply  in  the  case  of  retirement  on
30    account of disability.
31    (Source: P.A. 89-136, eff. 7-14-95.)

32        (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
33        Sec. 18-133.  Financing; employee contributions.
 
                            -3-                LRB9106091EGfg
 1        (a)  Effective July 1, 1967, each participant is required
 2    to  contribute  7 1/2%  of  each payment of salary toward the
 3    retirement annuity.  Such contributions shall continue during
 4    the entire time the  participant  is  in  service,  with  the
 5    following exceptions:
 6             (1)  Contributions  for  the  retirement annuity are
 7        not required on salary received after 18 years of service
 8        by persons who were participants before January 2, 1954.
 9             (2)  A participant who continues to serve as a judge
10        after becoming eligible to receive the  maximum  rate  of
11        annuity may elect, through a written direction filed with
12        the  Board,  to  discontinue  contributing to the System.
13        Any such option elected by a judge shall  be  irrevocable
14        unless  prior  to January 1, 2000 July 1, 1996, and while
15        continuing to serve as judge, the judge  (A)  files  with
16        the   Board   a   letter   cancelling  the  direction  to
17        discontinue contributing to  the  System  and  requesting
18        that  such  contributing  resume,  and  (B) pays into the
19        System an amount equal to the total of  the  discontinued
20        contributions  plus  interest  thereon  at  5% per annum.
21        Service  credits  earned  in  any  other   "participating
22        system"  as  defined  in Article 20 of this Code shall be
23        considered  for  purposes  of   determining   a   judge's
24        eligibility   to  discontinue  contributions  under  this
25        subdivision (a)(2).
26             (3)  A participant who (i) has attained age 60, (ii)
27        continues to serve as a judge after becoming eligible  to
28        receive  the  maximum  rate of annuity, and (iii) has not
29        elected to discontinue contributing to the  System  under
30        subdivision  (a)(2)  of  this Section (or has revoked any
31        such election) may elect,  through  a  written  direction
32        filed with the Board, to make contributions to the System
33        based  only  on  the  amount  of  the increases in salary
34        received by the  judge  on  or  after  the  date  of  the
 
                            -4-                LRB9106091EGfg
 1        election,  rather  than  the total salary received.  If a
 2        judge who is making contributions to the  System  on  the
 3        effective date of this amendatory Act of the 91st General
 4        Assembly  makes  an election to limit contributions under
 5        this  subdivision  (a)(3)  within  90  days  after   that
 6        effective  date,  the  election shall be deemed to become
 7        effective on that effective date and the judge  shall  be
 8        entitled  to receive a refund of any excess contributions
 9        paid to the System during that 90-day period;  any  other
10        election  under this subdivision (a)(3) becomes effective
11        on the first of the  month  following  the  date  of  the
12        election.   An election to limit contributions under this
13        subdivision  (a)(3)  is  irrevocable.   Service   credits
14        earned  in  any  other participating system as defined in
15        Article 20 of this Code shall be considered for  purposes
16        of  determining a judge's eligibility to make an election
17        under this subdivision (a)(3).
18        (b)  Beginning July 1, 1969, each participant is required
19    to contribute 1%  of  each  payment  of  salary  towards  the
20    automatic  increase  in annuity provided in Section 18-125.1.
21    However,  such  contributions  need  not  be  made   by   any
22    participant  who has elected prior to September 15, 1969, not
23    to  be  subject  to  the  automatic   increase   in   annuity
24    provisions.
25        (c)  Effective  July  13,  1953, each married participant
26    subject to the survivor's annuity provisions is  required  to
27    contribute  2 1/2%  of each payment of salary, whether or not
28    he or she is required to make any other  contributions  under
29    this  Section.  Such contributions shall be made concurrently
30    with the contributions made for annuity purposes.
31    (Source: P.A. 89-136, eff. 7-14-95.)

32        Section 99. Effective date.  This Act takes  effect  upon
33    becoming law.

[ Top ]