State of Illinois
91st General Assembly
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91_SB1926

 
                                              LRB9113129EGfgA

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Section 18-125 as follows:

 6        (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
 7        Sec. 18-125.  Retirement annuity amount.
 8        (a)  The  annual retirement annuity for a participant who
 9    terminated service as a judge prior to July 1, 1971 shall  be
10    based  on  the  law  in  effect at the time of termination of
11    service.
12        (b)  Effective July 1, 1971, the retirement  annuity  for
13    any  participant  in  service  on or after such date shall be
14    3 1/2% of final average salary, as defined in  this  Section,
15    for  each  of  the  first 10 years of service, and 5% of such
16    final average salary for each year of service  on  excess  of
17    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-               LRB9113129EGfgA
 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 0.25% 1/2 of 1% for each month that
19    the participant's age is under  60  years  at  the  time  the
20    annuity commences.  However, for a participant who retires on
21    or  after  the  effective  date of this amendatory Act of the
22    91st General Assembly, the percentage reduction in retirement
23    annuity imposed under this subsection  shall  be  reduced  by
24    0.25% 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    25 years 26 years of service in this System may retire at age
27    55 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. 91-653, eff. 12-10-99.)

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

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