State of Illinois
92nd General Assembly
Legislation

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92_HB0477

 
                                               LRB9205250EGfg

 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 Sections 14-114,  14-119,  14-121,  14-128,  14-131,
 6    15-136, 15-136.3, 15-145, 15-155, 15-165, 16-133.1, 16-143.1,
 7    16-158,  17-119,  and 17-122 and by adding Sections 14-114.1,
 8    15-137.1, 16-134.1, and 17-119.2 as follows:

 9        (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
10        Sec. 14-114.  Automatic increase in retirement annuity.
11        (a)  Any person receiving a retirement annuity under this
12    Article who retires having attained age 60,  or  who  retires
13    before age 60 having at least 35 years of creditable service,
14    or  who  retires on or after January 1, 2001 at an age which,
15    when added to the number of years of his  or  her  creditable
16    service,  equals  at  least  85,  shall,  on  January  1 next
17    following the first full year of retirement, have the  amount
18    of  the  then  fixed  and  payable monthly retirement annuity
19    increased 3%.  Any  person  receiving  a  retirement  annuity
20    under  this  Article  who retires before attainment of age 60
21    and with less than (i) 35  years  of  creditable  service  if
22    retirement  is  before January 1, 2001, or (ii) the number of
23    years of creditable service which, when added to the member's
24    age, would equal 85, if retirement is on or after January  1,
25    2001,  shall  have  the  amount  of  the  fixed  and  payable
26    retirement annuity increased by 3% on the January 1 occurring
27    on  or  next  following  (1) attainment of age 60, or (2) the
28    first anniversary  of  retirement,  whichever  occurs  later.
29    However,  for  persons who receive the alternative retirement
30    annuity under Section 14-110, references in  this  subsection
31    (a)  to  attainment  of  age  60  shall be deemed to refer to
 
                            -2-                LRB9205250EGfg
 1    attainment  of  age  55.   For  a  person   receiving   early
 2    retirement incentives under Section 14-108.3 whose retirement
 3    annuity  began after January 1, 1992 pursuant to an extension
 4    granted under subsection  (e)  of  that  Section,  the  first
 5    anniversary  of  retirement  shall be deemed to be January 1,
 6    1993.
 7        On each January 1  following  the  date  of  the  initial
 8    increase   under  this  subsection,  the  employee's  monthly
 9    retirement annuity shall be increased by an additional 3%.
10        Beginning January 1, 1990, all automatic annual increases
11    payable  under  this  Section  shall  be  calculated   as   a
12    percentage  of  the  total annuity payable at the time of the
13    increase, including previous  increases  granted  under  this
14    Article.
15        (b)  The  provisions  of  subsection  (a) of this Section
16    shall be applicable to an employee only if the employee makes
17    the additional contributions required after December 31, 1969
18    for the purpose of the automatic increases for not less  than
19    the  equivalent  of  one full year. If an employee becomes an
20    annuitant before his additional contributions equal one  full
21    year's  contributions  based  on  his  salary  at the date of
22    retirement, the employee may pay the necessary balance of the
23    contributions  to  the  system,  without  interest,  and   be
24    eligible  for  the  increasing  annuity  authorized  by  this
25    Section.
26        (c)  The  provisions  of  subsection  (a) of this Section
27    shall not be applicable to any annuitant who is on retirement
28    on  December  31,  1969,  and  thereafter  returns  to  State
29    service, unless the member has established at least one  year
30    of  additional  creditable  service  following  reentry  into
31    service.
32        (d)  In addition to other increases which may be provided
33    by  this  Section,  on  January 1, 1981 any annuitant who was
34    receiving a retirement annuity on or before January  1,  1971
 
                            -3-                LRB9205250EGfg
 1    shall  have  his retirement annuity then being paid increased
 2    $1 per month for each year of creditable service.  On January
 3    1, 1982, any  annuitant  who  began  receiving  a  retirement
 4    annuity  on  or  before  January  1,  1977,  shall  have  his
 5    retirement annuity then being paid increased $1 per month for
 6    each year of creditable service.
 7        On  January  1, 1987, any annuitant who began receiving a
 8    retirement annuity on or before January 1, 1977,  shall  have
 9    the  monthly  retirement annuity increased by an amount equal
10    to 8¢ per year of creditable  service  times  the  number  of
11    years that have elapsed since the annuity began.
12        (d-1)  On   July  1,  2001,  every  annuitant  who  began
13    receiving a retirement annuity before January 1,  1980  shall
14    have the monthly retirement annuity increased by whichever of
15    the following percentages is applicable:
16              5% if the annuity began in 1979;
17             10% if the annuity began in 1978;
18             14% if the annuity began in 1977;
19             14% if the annuity began in 1976;
20             18% if the annuity began in 1975;
21             23% if the annuity began in 1974;
22             32% if the annuity began in 1973 or before.
23        The increase under this subsection shall be calculated as
24    a  percentage of the amount of the retirement annuity payable
25    on June 30, 2001, including any increases previously received
26    under this Article, and shall be included in the  calculation
27    of increases granted thereafter under subsection (a).
28        (e)  Every person who receives the alternative retirement
29    annuity  under  Section 14-110 and who is eligible to receive
30    the 3% increase under subsection  (a)  on  January  1,  1986,
31    shall  also  receive  on  that  date  a  one-time increase in
32    retirement annuity equal to the difference  between  (1)  his
33    actual   retirement  annuity  on  that  date,  including  any
34    increases received under subsection (a), and (2)  the  amount
 
                            -4-                LRB9205250EGfg
 1    of  retirement annuity he would have received on that date if
 2    the amendments to subsection (a) made by  Public  Act  84-162
 3    had been in effect since the date of his retirement.
 4    (Source: P.A. 91-927, eff. 12-14-00.)

 5        (40 ILCS 5/14-114.1 new)
 6        Sec.  14-114.1.  Reduction  of  purchasing power; policy;
 7    report; increase.
 8        (a)  The General Assembly finds and declares that:
 9             (1)  The purchasing power of a fixed annuity can  be
10        eroded   over  time  by  the  effects  of  inflation  and
11        increases in the general cost of living.
12             (2)  For a person whose income consists primarily of
13        a  fixed  annuity,  the  reduction  in  purchasing  power
14        resulting from increases in the cost of living can become
15        catastrophic over time, transforming  a  once-comfortable
16        retirement into a time of poverty and need.
17             (3)  The  State  of  Illinois is concerned about the
18        effects that a significant reduction in purchasing  power
19        can  have on the quality of life of its retired employees
20        and their survivors.
21             (4)  The General Assembly has  previously  addressed
22        this  concern by providing for automatic annual increases
23        in  retirement  and  survivor's  annuities   under   this
24        Article.    Recognizing   that   these  automatic  annual
25        increases, by themselves, are not a  complete  answer  in
26        times  of  high inflation, the General Assembly has also,
27        from time to time, provided specific  one-time  increases
28        in annuities for certain categories of annuitants.
29        (b)  It  is  the  public  policy  of  this  State and the
30    intention of  the  General  Assembly  to  protect  annuitants
31    against  significant decreases in the purchasing power of the
32    retirement  and  survivor's  annuities  granted  under   this
33    Article.
 
                            -5-                LRB9205250EGfg
 1        (c)  The  System  shall regularly review the changes that
 2    have occurred in the purchasing power of the  retirement  and
 3    survivor's  annuities  being  paid under this Article, and it
 4    shall report to the General Assembly, the Governor,  and  the
 5    Pension  Laws  Commission  whenever  it  determines  that the
 6    original purchasing power of those annuities has been reduced
 7    by 20% or more for any category or group of annuitants.   The
 8    System may include in the report its recommendations, if any,
 9    for legislative action to address its findings.
10        (d)  As  used  in  this Section, the term "retirement and
11    survivor's annuities"  means  all  annuities  as  defined  in
12    Section 14-103.18, other than disability benefits.

13        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
14        Sec. 14-119.  Amount of widow's annuity.
15        (a)  The  widow's  annuity  shall be 50% of the amount of
16    retirement annuity payable to the member on the date of death
17    while on retirement if an annuitant, or on the  date  of  his
18    death  while in service if an employee, regardless of his age
19    on such date, or on the date of withdrawal if death  occurred
20    after  termination of service under the conditions prescribed
21    in the preceding Section.
22        (b)  If an eligible widow, regardless of age, has in  her
23    care  any unmarried child or children of the member under age
24    18 (under age 22 if a full-time student), the widow's annuity
25    shall be increased in the amount  of  5%  of  the  retirement
26    annuity  for each such child, but the combined payments for a
27    widow and children shall not exceed 66 2/3% of  the  member's
28    earned retirement annuity.
29        The  amount  of retirement annuity from which the widow's
30    annuity is derived shall be that earned by the member without
31    regard to whether he attained age 60 prior to his  withdrawal
32    under the conditions stated or prior to his death.
33        (c)  Adopted  children shall be considered as children of
 
                            -6-                LRB9205250EGfg
 1    the  member  only  if  the  proceedings  for  adoption   were
 2    commenced at least 1 year prior to the member's death.
 3        Marriage of a child shall render the child ineligible for
 4    further  consideration  in  the increase in the amount of the
 5    widow's annuity.
 6        Attainment of age 18 (age  22  if  a  full-time  student)
 7    shall  render a child ineligible for further consideration in
 8    the increase of the widow's annuity, but the annuity  to  the
 9    widow  shall  be  continued thereafter, without regard to her
10    age at that time.
11        (d)  A widow's annuity payable on account of any  covered
12    employee  who shall have been a covered employee for at least
13    18 months shall be reduced by 1/2 of the amount of  survivors
14    benefits  to  which  his beneficiaries are eligible under the
15    provisions of the Federal Social Security  Act,  except  that
16    (1)  the  amount  of  any  widow's annuity payable under this
17    Article shall not be reduced by reason of any increase  under
18    that  Act  which  occurs  after  the  offset required by this
19    subsection is first applied to  that  annuity,  and  (2)  for
20    benefits  granted  on  or  after  January 1, 1992, the offset
21    under this subsection (d) shall not exceed 50% of the  amount
22    of widow's annuity otherwise payable.
23        (e)  Upon  the  death of a recipient of a widow's annuity
24    the  excess,  if     any,   of   the   member's   accumulated
25    contributions   plus   credited  interest  over  all  annuity
26    payments to the member and widow, exclusive of the $500  lump
27    sum  payment,  shall  be paid to the named beneficiary of the
28    widow, or if none has been named, to the estate of the widow,
29    provided no reversionary annuity is payable.
30        (f)  On January 1,  1981,  any  recipient  of  a  widow's
31    annuity  who  was  receiving  a  widow's annuity on or before
32    January 1, 1971, shall have her widow's  annuity  then  being
33    paid  increased  by  1%  for each full year which has elapsed
34    from the date the widow's annuity began.  On January 1, 1982,
 
                            -7-                LRB9205250EGfg
 1    any recipient of a widow's  annuity  who  began  receiving  a
 2    widow's  annuity after January 1, 1971, but before January 1,
 3    1981,  shall  have  her  widow's  annuity  then  being   paid
 4    increased by 1% for each full year which has elapsed from the
 5    date  the  widow's  annuity  began.   On January 1, 1987, any
 6    recipient of  a  widow's  annuity  who  began  receiving  the
 7    widow's  annuity on or before January 1, 1977, shall have the
 8    monthly widow's annuity increased by $1 for  each  full  year
 9    which has elapsed since the date the annuity began.
10        (f-1)  On  July  1,  2001,  every  recipient of a widow's
11    annuity whose original annuity began before January  1,  1980
12    shall have the monthly widow's annuity increased by whichever
13    of the following percentages is applicable:
14              5% if the original annuity began in 1979;
15             10% if the original annuity began in 1978;
16             14% if the original annuity began in 1977;
17             14% if the original annuity began in 1976;
18             18% if the original annuity began in 1975;
19             23% if the original annuity began in 1974;
20             32% if the original annuity began in 1973 or before.
21        In  the  case of the survivor of a deceased annuitant who
22    died while receiving a retirement annuity, "original annuity"
23    means the deceased annuitant's  retirement  annuity;  in  all
24    other cases, "original annuity" means the widow's annuity.
25        The increase under this subsection shall be calculated as
26    a  percentage of the amount of the widow's annuity payable on
27    June 30, 2001, including any  increases  previously  received
28    under  this Article, and shall be included in the calculation
29    of increases granted thereafter under subsection (g).
30        (g)  Beginning January 1,  1990,  every  widow's  annuity
31    shall  be  increased  (1)  on  each January 1 occurring on or
32    after the commencement of the annuity if the deceased  member
33    died  while  receiving  a retirement annuity, or (2) in other
34    cases, on each January 1 occurring  on  or  after  the  first
 
                            -8-                LRB9205250EGfg
 1    anniversary  of the commencement of the annuity, by an amount
 2    equal to 3% of the current amount of the  annuity,  including
 3    any  previous  increases  under  this Article. Such increases
 4    shall apply without regard to whether the deceased member was
 5    in service on or after  the  effective  date  of  Public  Act
 6    86-1488, but shall not accrue for any period prior to January
 7    1, 1990.
 8    (Source: P.A. 90-448, eff. 8-16-97.)

 9        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
10        Sec.  14-121.   Amount of survivors annuity.  A survivors
11    annuity beneficiary shall  be  entitled  upon  death  of  the
12    member  to  a  single sum payment of $1,000, payable pro rata
13    among all persons entitled thereto, together with a survivors
14    annuity  payable  at  the  rates  and  under  the  conditions
15    specified in this Article.
16        (a)  If the survivors annuity beneficiary  is  a  spouse,
17    the   survivors   annuity  shall  be  30%  of  final  average
18    compensation subject to a maximum payment of $400 per month.
19        (b)  If an eligible child or children under the care of a
20    spouse also survives  the  member,  such  spouse  as  natural
21    guardian  of the child or children shall receive, in addition
22    to the foregoing annuity, 20% of final  average  compensation
23    on  account  of  each  such  child  and  10% of final average
24    compensation divided pro rata among such children, subject to
25    a  maximum  payment  on  account  of  all  survivor   annuity
26    beneficiaries of $600 per month, or 80% of the member's final
27    average compensation, whichever is the lesser.
28        (c)  If    the    survivors    annuity   beneficiary   or
29    beneficiaries consists of an unmarried child or children, the
30    amount of survivors annuity shall be  20%  of  final  average
31    compensation   to  each  child,  and  10%  of  final  average
32    compensation  divided  pro  rata  among  all  such   children
33    entitled to such annuity, subject to a maximum payment to all
 
                            -9-                LRB9205250EGfg
 1    children  combined  of  $600 per month or 80% of the member's
 2    final average compensation, whichever is the lesser.
 3        (d)  If the survivors annuity beneficiary is one or  more
 4    dependent  parents, the annuity shall be 20% of final average
 5    compensation  to  each  parent  and  10%  of  final   average
 6    compensation  divided  pro rata among the parents who qualify
 7    for this annuity,  subject  to  a  maximum  payment  to  both
 8    dependent parents of $400 per month.
 9        (e)  The  survivors  annuity  to  the spouse, children or
10    dependent parents of a member whose death  occurs  after  the
11    date  of  last  withdrawal,  or after retirement, or while in
12    service following reentry into service after  retirement  but
13    before  completing  1  1/2  years  of  additional  creditable
14    service,  shall  not exceed the lesser of 80% of the member's
15    earned retirement annuity at the date of death or the maximum
16    previously established in this Section.
17        (f)  In  applying  the  limitation  prescribed   on   the
18    combined   payments   to   2   or   more   survivors  annuity
19    beneficiaries, the annuity on  account  of  each  beneficiary
20    shall  be  reduced  pro rata until such time as the number of
21    beneficiaries makes the reduction no longer applicable.
22        (g)  A  survivors  annuity  payable  on  account  of  any
23    covered employee who shall have been a covered  employee  for
24    at  least  18  months  at  date  of death or last withdrawal,
25    whichever is the later,  shall  be  reduced  by  1/2  of  the
26    survivors  benefits  to  which his beneficiaries are eligible
27    under the federal Social Security Act, except  that  (1)  the
28    survivors  annuity  payable  under  this Article shall not be
29    reduced by any increase under that Act which occurs after the
30    offset required by this subsection is first applied  to  that
31    annuity,  and (2) for benefits granted on or after January 1,
32    1992, the offset under this subsection (g) shall  not  exceed
33    50% of the amount of survivors annuity otherwise payable.
34        (h)  The minimum payment to a beneficiary hereunder shall
 
                            -10-               LRB9205250EGfg
 1    be  $60  per month, which shall be reduced in accordance with
 2    the limitation prescribed on the  combined  payments  to  all
 3    beneficiaries of a member.
 4        (i)  Subject  to  the  conditions  set  forth  in Section
 5    14-120, the minimum total survivors annuity  benefit  payable
 6    to  the  survivors annuity beneficiaries of a deceased member
 7    or annuitant whose death occurs on or after January 1,  1984,
 8    shall  be 50% of the amount of retirement annuity that was or
 9    would have been payable to the deceased on the date of death,
10    regardless of the age of the deceased on such date.   If  the
11    minimum total benefit provided by this subsection exceeds the
12    maximum  otherwise imposed by this Section, the minimum total
13    benefit shall nevertheless be payable.  Any increase  in  the
14    total  survivors annuity benefit resulting from the operation
15    of this subsection  shall  be  divided  among  the  survivors
16    annuity  beneficiaries of the deceased in proportion to their
17    shares of  the  total  survivors  annuity  benefit  otherwise
18    payable under this Section.
19        (j)  Any  survivors  annuity  beneficiary  whose  annuity
20    terminates  due  to  any  condition specified in this Article
21    other than death shall be entitled to a refund of the excess,
22    if any, of the accumulated contributions of the  member  plus
23    credited  interest  over  all  payments  to  the  member  and
24    beneficiary  or  beneficiaries,  exclusive  of the single sum
25    payment  of  $1,000,  provided   no   future   survivors   or
26    reversionary annuity benefits are payable.
27        (k)  Upon  the  death of the last eligible recipient of a
28    survivors  annuity  the  excess,  if  any,  of  the  member's
29    accumulated contributions plus  credited  interest  over  all
30    annuity payments to the member and survivors exclusive of the
31    single  sum  payment  of  $1000,  shall  be paid to the named
32    beneficiary of the last eligible survivor,  or  if  none  has
33    been  named,  to  the  estate  of the last eligible survivor,
34    provided no reversionary annuity is payable.
 
                            -11-               LRB9205250EGfg
 1        (l)  On January 1, 1981, any survivor who was receiving a
 2    survivors annuity on or before January 1,  1971,  shall  have
 3    his  survivors  annuity  then  being paid increased by 1% for
 4    each full year which has elapsed from the  date  the  annuity
 5    began.   On January 1, 1982, any survivor who began receiving
 6    a survivor's  annuity  after  January  1,  1971,  but  before
 7    January 1, 1981, shall have his survivor's annuity then being
 8    paid increased by 1% for each full year that has elapsed from
 9    the  date the annuity began. On January 1, 1987, any survivor
10    who began receiving a survivor's annuity on or before January
11    1, 1977, shall have the monthly survivor's annuity  increased
12    by $1 for each full year which has elapsed since the date the
13    survivor's annuity began.
14        (m)  Beginning  January 1, 1990, every survivor's annuity
15    shall be increased (1) on each  January  1  occurring  on  or
16    after  the commencement of the annuity if the deceased member
17    died while receiving a retirement annuity, or  (2)  in  other
18    cases,  on  each  January  1  occurring on or after the first
19    anniversary of the commencement of the annuity, by an  amount
20    equal  to  3% of the current amount of the annuity, including
21    any previous increases under this Article.    Such  increases
22    shall apply without regard to whether the deceased member was
23    in  service  on  or  after  the  effective date of Public Act
24    86-1488, but shall not accrue for any period prior to January
25    1, 1990.
26        (n)  On July 1, 2001, every  recipient  of  a  survivor's
27    annuity  whose  original annuity began before January 1, 1980
28    shall  have  the  monthly  survivor's  annuity  increased  by
29    whichever of the following percentages is applicable:
30              5% if the original annuity began in 1979;
31             10% if the original annuity began in 1978;
32             14% if the original annuity began in 1977;
33             14% if the original annuity began in 1976;
34             18% if the original annuity began in 1975;
 
                            -12-               LRB9205250EGfg
 1             23% if the original annuity began in 1974;
 2             32% if the original annuity began in 1973 or before.
 3        In the case of the survivor of a deceased  annuitant  who
 4    died while receiving a retirement annuity, "original annuity"
 5    means  the  deceased  annuitant's  retirement annuity; in all
 6    other cases, "original annuity" means the survivor's annuity.
 7        The increase under this subsection shall be calculated as
 8    a percentage of the amount of the survivor's annuity  payable
 9    on June 30, 2001, including any increases previously received
10    under  this Article, and shall be included in the calculation
11    of increases granted thereafter under subsection (m).
12    (Source: P.A. 86-273; 86-1488; 87-794.)

13        (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
14        Sec.   14-128.    Occupational   death   benefit.      An
15    occupational  death  benefit  is provided for a member of the
16    System whose death, prior to  retirement,  is  the  proximate
17    result  of  bodily  injuries  sustained or a hazard undergone
18    while in the performance and within the scope of the member's
19    duties.
20        (a)  Conditions for payment.
21        Exclusive of the lump sum payment  provided  for  herein,
22    all  annuities under this Section shall accrue and be payable
23    for complete calendar months, beginning on the first  day  of
24    the  month  next  following the month in which the initiating
25    event occurs and ending on the last day of the month in which
26    the terminating event occurs.
27        The following  named  survivors  of  the  member  may  be
28    eligible for an annuity under this Section:
29             (i)  The member's spouse.
30             (ii)  An  unmarried child of the member under age 18
31        (under age 22  if  a  full-time  student);  an  unmarried
32        stepchild  under  age  18  (under  age  22 if a full-time
33        student) who has been such for at least one year  at  the
 
                            -13-               LRB9205250EGfg
 1        date  of  the  member's death; an unmarried adopted child
 2        under age 18 (under age 22 if a full-time student) if the
 3        adoption proceedings were initiated  at  least  one  year
 4        prior  to the death of the member; and an unmarried child
 5        over age 18 who is dependent by reason of a  physical  or
 6        mental disability, for so long as such physical or mental
 7        disability  continues.   For the purposes of this Section
 8        disability means inability to engage in  any  substantial
 9        gainful  activity by reason of any medically determinable
10        physical or mental impairment which can  be  expected  to
11        result in death or which has lasted or can be expected to
12        last for a continuous period of not less than 12 months.
13             (iii)  If  no spouse or eligible children survive: a
14        dependent parent of the member; a  dependent  step-parent
15        by  a  marriage contracted before the member attained age
16        18; or a dependent adopting parent by whom the member was
17        adopted before he or she attained age 18.
18        The term "dependent" relating to  an  occupational  death
19    benefit means a survivor of the member who was receiving from
20    the  member at the date of the member's death at least 1/2 of
21    the support for maintenance including board, lodging, medical
22    care and like living costs.
23        Payment  of  the  annuity  shall   continue   until   the
24    occurrence of the following:
25             (1)  remarriage before age 55 that occurs before the
26        effective date of this amendatory Act of the 91st General
27        Assembly or death, in the case of a surviving spouse;
28             (2)  attainment   of   age   18  or  termination  of
29        disability,  death,  or  marriage,  in  the  case  of  an
30        eligible child;
31             (3)  remarriage before age 55 or death, in the  case
32        of a dependent parent.
33        If  none of the aforementioned beneficiaries is living at
34    the date of  death  of  the  member,  no  occupational  death
 
                            -14-               LRB9205250EGfg
 1    benefit  shall  be  payable,  but  the  nonoccupational death
 2    benefit shall be payable as provided in this Article.
 3        The change made to this subsection by this amendatory Act
 4    of the 91st General Assembly (pertaining to remarriage  prior
 5    to  age  55)  applies  without regard to whether the deceased
 6    member was in service on or after the effective date of  this
 7    amendatory Act.
 8        (b)  Amount of benefit.
 9        The  member's  accumulated  contributions  plus  credited
10    interest shall be payable in a lump sum to such person as the
11    member  has nominated by written direction, duly acknowledged
12    and filed with the Board, or if no  such  nomination  to  the
13    estate  of the member.  When an annuitant is re-employed by a
14    Department,  the  accumulated  contributions  plus   credited
15    interest payable on the member's account shall, if the member
16    has not previously elected a reversionary annuity, consist of
17    the  excess,  if  any,  of  the  member's  total  accumulated
18    contributions  plus  credited  interest  for  all  creditable
19    service  over  the  total  amount  of  all retirement annuity
20    payments received by the member prior to death.
21        In addition to  the  foregoing  payment,  an  annuity  is
22    provided for eligible survivors as follows:
23             (1)  If  the  survivor is a spouse only, the annuity
24        shall be 50% of the member's final average compensation.
25             (2)  If the  spouse  has  in  his  or  her  care  an
26        eligible   child   or  children,  the  annuity  shall  be
27        increased by an amount equal to 15% of the final  average
28        compensation  on account of each such child, subject to a
29        limitation on  the  combined  annuities  to  a  surviving
30        spouse and children of 75% of final average compensation.
31             (3)  If  there  is  no  surviving  spouse, or if the
32        surviving spouse dies or remarries while a child  remains
33        eligible,  then  each  such child shall be entitled to an
34        annuity of 15% of the  deceased  member's  final  average
 
                            -15-               LRB9205250EGfg
 1        compensation,  subject  to  a  limitation of 50% of final
 2        average compensation to all such children.
 3             (4)  If there is no  surviving  spouse  or  eligible
 4        children,  then  an  annuity  shall  be  payable  to  the
 5        member's dependent parents, equal to 25% of final average
 6        compensation to each such beneficiary.
 7        If  any  annuity  payable under this Section is less than
 8    the  corresponding  survivors  annuity,  the  beneficiary  or
 9    beneficiaries of the annuity under this Section may elect  to
10    receive  the  survivors annuity and the nonoccupational death
11    benefit provided for in this Article in lieu of  the  annuity
12    provided under this Section.
13        (c)  Occupational  death  claims  pending adjudication by
14    the  Industrial  Commission  or  a  ruling  by   the   agency
15    responsible  for determining the liability of the State under
16    the "Workers' Compensation  Act"  or  "Workers'  Occupational
17    Diseases  Act"  shall  be  payable  under Sections 14-120 and
18    14-121  until  a  ruling  or  adjudication  occurs,  if   the
19    beneficiary  or  beneficiaries:  (1)  meet all conditions for
20    payment as prescribed in this Article;  and  (2)  execute  an
21    assignment of benefits payable as a result of adjudication by
22    the   Industrial   Commission  or  a  ruling  by  the  agency
23    responsible for determining the liability of the State  under
24    such  Acts.   The  assignment shall be made to the System and
25    shall be for an amount equal to the excess of  benefits  paid
26    under  Sections  14-120 and 14-121 over benefits payable as a
27    result of adjudication of  the  workers'  compensation  claim
28    computed from the date of death of the member.
29        (d)  Every  occupational death annuity payable under this
30    Section shall be increased on each January 1 occurring on  or
31    after  (i)  January 1, 1990, or (ii) the first anniversary of
32    the commencement of the annuity, whichever occurs  later,  by
33    an  amount  equal to 3% of the current amount of the annuity,
34    including any previous increases under this Article,  without
 
                            -16-               LRB9205250EGfg
 1    regard  to  whether the deceased member was in service on the
 2    effective date of this amendatory Act of 1991.
 3        (e)  On July 1, 2001, every annuitant who began receiving
 4    an occupational death annuity before January  1,  1980  shall
 5    have  the  monthly  annuity  increased  by  whichever  of the
 6    following percentages is applicable:
 7              5% if the annuity began in 1979;
 8             10% if the annuity began in 1978;
 9             14% if the annuity began in 1977;
10             14% if the annuity began in 1976;
11             18% if the annuity began in 1975;
12             23% if the annuity began in 1974;
13             32% if the annuity began in 1973 or before.
14        The increase under this subsection shall be calculated as
15    a percentage of the amount of the occupational death  annuity
16    payable  on June 30, 2001, including any increases previously
17    received under this Article, and shall  be  included  in  the
18    calculation  of increases granted thereafter under subsection
19    (d).
20    (Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)

21        (40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
22        Sec. 14-131. Contributions by State.
23        (a)  The State shall make contributions to the System  by
24    appropriations of amounts which, together with other employer
25    contributions  from trust, federal, and other funds, employee
26    contributions, investment income, and other income,  will  be
27    sufficient  to meet the cost of maintaining and administering
28    the System on a 90% funded basis in accordance with actuarial
29    recommendations.
30        For the purposes of this Section and  Section  14-135.08,
31    references  to  State  contributions  refer  only to employer
32    contributions and do not include employee contributions  that
33    are  picked up or otherwise paid by the State or a department
 
                            -17-               LRB9205250EGfg
 1    on behalf of the employee.
 2        (b)  The Board shall determine the total amount of  State
 3    contributions  required  for each fiscal year on the basis of
 4    the actuarial tables and other  assumptions  adopted  by  the
 5    Board,  using  the  formulae  formula  in  subsection (e) and
 6    subsection (e-1).  The minimum contribution to the System  to
 7    be made by the State for each fiscal year shall be the sum of
 8    the  amount  determined  under  subsection (e) and the amount
 9    determined under subsection (e-1).
10        The Board shall also determine a State contribution  rate
11    for  each  fiscal year, expressed as a percentage of payroll,
12    based  on  the  total  required  State   contribution   under
13    subsections  (e)  and  (e-1)  for  that fiscal year (less the
14    amount received  by  the  System  from  appropriations  under
15    Section  8.12  of  the State Finance Act and Section 1 of the
16    State Pension Funds Continuing Appropriation Act, if any, for
17    the fiscal year ending on the June 30  immediately  preceding
18    the  applicable  November  15  certification  deadline),  the
19    estimated  payroll  (including all forms of compensation) for
20    personal services rendered by  eligible  employees,  and  the
21    recommendations of the actuary.
22        For  the purposes of this Section and Section 14.1 of the
23    State Finance Act, the  term  "eligible  employees"  includes
24    employees  who  participate  in  the  System, persons who may
25    elect to participate in the System but have not  so  elected,
26    persons  who are serving a qualifying period that is required
27    for participation, and annuitants employed by a department as
28    described in subdivision (a)(1) or (a)(2) of Section 14-111.
29        (c)  Contributions  shall  be   made   by   the   several
30    departments  for  each  pay  period  by warrants drawn by the
31    State  Comptroller  against   their   respective   funds   or
32    appropriations  based  upon vouchers stating the amount to be
33    so contributed.  These amounts shall be  based  on  the  full
34    rate  certified by the Board under Section 14-135.08 for that
 
                            -18-               LRB9205250EGfg
 1    fiscal year.
 2        (d)  If an employee is paid from trust funds  or  federal
 3    funds,  the  department  or other employer shall pay employer
 4    contributions from those funds to the System at the certified
 5    rate, unless the terms of  the  trust  or  the  federal-State
 6    agreement  preclude the use of the funds for that purpose, in
 7    which case the required employer contributions shall be  paid
 8    by the State.
 9        (e)  For  State  fiscal  years  2011  through  2045,  the
10    minimum  contribution  to  the System to be made by the State
11    under this subsection (e) for each fiscal year  shall  be  an
12    amount determined by the System to be sufficient to bring the
13    total  assets  of the System up to 90% of the total actuarial
14    liabilities  of  the  System  (other  than  the   liabilities
15    described  in subsection (e-1) of this Section) by the end of
16    State fiscal year 2045.  In making these determinations,  the
17    required  State  contribution under this subsection (e) shall
18    be calculated each year as a level percentage of payroll over
19    the years remaining to and including  fiscal  year  2045  and
20    shall be determined under the projected unit credit actuarial
21    cost method.
22        For  State  fiscal  years  1996  through  2010, the State
23    contribution to the System under this subsection  (e),  as  a
24    percentage  of  the  applicable  employee  payroll,  shall be
25    increased in equal annual increments so that by State  fiscal
26    year  2011,  the  State  is contributing at the rate required
27    under this Section; except that (i)  for  State  fiscal  year
28    1998, for all purposes of this Code and any other law of this
29    State,  the  certified  percentage of the applicable employee
30    payroll  shall  be  5.052%  for  employees  earning  eligible
31    creditable service under Section 14-110 and  6.500%  for  all
32    other  employees,  notwithstanding any contrary certification
33    made under Section 14-135.08 before  the  effective  date  of
34    this  amendatory  Act  of  1997,  and  (ii)  in the following
 
                            -19-               LRB9205250EGfg
 1    specified State fiscal years, the State contribution  to  the
 2    System  under  this subsection (e) shall not be less than the
 3    following indicated percentages of  the  applicable  employee
 4    payroll,  even  if  the  indicated  percentage will produce a
 5    State contribution in excess of the amount otherwise required
 6    under this subsection and subsection (a): 9.8%  in  FY  1999;
 7    10.0%  in  FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6%
 8    in FY 2003; 10.8% in FY 2004; 11.0% in FY 2005; 11.2%  in  FY
 9    2006;  11.4%  in  FY  2007; 11.6% in FY 2008; and 11.8% in FY
10    2009.
11        Beginning in State fiscal year 2046,  the  minimum  State
12    contribution  under  this subsection (e) for each fiscal year
13    shall be the amount needed to maintain the  total  assets  of
14    the  System  at 90% of the total actuarial liabilities of the
15    System.
16        (e-1)  The cost of the one-time increases granted by this
17    amendatory Act of the 92nd General Assembly under  subsection
18    (d-1)  of Section 14-114, subsection (f-1) of Section 14-119,
19    and subsection (n) of Section 14-121 shall  be  paid  by  the
20    State  on  a  level  dollar  basis  over a period of 10 years
21    beginning July 1, 2003.  These contributions are in  addition
22    to,  and  shall  not  be  included in the calculation of, the
23    State contribution required under subsection (e),  but  shall
24    be   included  in  the  calculation  of  the  annual  payroll
25    percentage under subsection (b).
26    (Source: P.A. 89-136, eff. 7-14-95; 90-65, eff. 7-7-97.)

27        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
28        Sec.  15-136.   Retirement  annuities  -   Amount.    The
29    provisions  of  this  Section  15-136  apply  only  to  those
30    participants who are participating in the traditional benefit
31    package  or  the portable benefit package and do not apply to
32    participants who are participating in the self-managed plan.
33        (a)  The amount of a  participant's  retirement  annuity,
 
                            -20-               LRB9205250EGfg
 1    expressed  in  the  form  of  a single-life annuity, shall be
 2    determined by whichever of the following rules is  applicable
 3    and provides the largest annuity:
 4        Rule  1:  The  retirement annuity shall be 1.67% of final
 5    rate of earnings for each of the first 10 years  of  service,
 6    1.90%  for  each  of  the next 10 years of service, 2.10% for
 7    each year of service in excess of 20 but  not  exceeding  30,
 8    and  2.30%  for each year in excess of 30; or for persons who
 9    retire on or after January 1, 1998, 2.2% of the final rate of
10    earnings for each year of service.
11        Rule 2:  The retirement annuity shall be the sum  of  the
12    following,   determined   from   amounts   credited   to  the
13    participant in accordance with the actuarial tables  and  the
14    prescribed  rate  of  interest  in  effect  at  the  time the
15    retirement annuity begins:
16             (i)  the normal annuity which can be provided on  an
17        actuarially  equivalent  basis, by the accumulated normal
18        contributions as of the date the annuity begins; and
19             (ii)  an annuity from employer contributions  of  an
20        amount  equal  to  that  which  can  be  provided  on  an
21        actuarially  equivalent basis from the accumulated normal
22        contributions  made  by  the  participant  under  Section
23        15-113.6 and Section 15-113.7 plus 1.4  times  all  other
24        accumulated normal contributions made by the participant.
25        With  respect  to  a  police  officer  or firefighter who
26    retires on or after August 14, 1998, the  accumulated  normal
27    contributions  taken  into account under clauses (i) and (ii)
28    of  this  Rule  2  shall  include   the   additional   normal
29    contributions made by the police officer or firefighter under
30    Section 15-157(a).
31        The  amount of a retirement annuity calculated under this
32    Rule  2  shall  be  computed  solely  on  the  basis  of  the
33    participant's accumulated normal contributions, as  specified
34    in  this  Rule  and  defined  in  Section 15-116.  Neither an
 
                            -21-               LRB9205250EGfg
 1    employee or employer contribution for early retirement  under
 2    Section 15-136.2 nor any other employer contribution shall be
 3    used in the calculation of the amount of a retirement annuity
 4    under this Rule 2.
 5        This  amendatory  Act  of  the 91st General Assembly is a
 6    clarification  of  existing  law   and   applies   to   every
 7    participant and annuitant without regard to whether status as
 8    an  employee  terminates  before  the  effective date of this
 9    amendatory Act.
10        Rule 3:  The retirement annuity of a participant  who  is
11    employed  at  least  one-half time during the period on which
12    his or her final rate of earnings is based, shall be equal to
13    the  participant's  years  of  service  not  to  exceed   30,
14    multiplied  by  (1)  $96  if  the participant's final rate of
15    earnings is less than $3,500, (2) $108 if the final  rate  of
16    earnings is at least $3,500 but less than $4,500, (3) $120 if
17    the  final  rate of earnings is at least $4,500 but less than
18    $5,500, (4) $132 if the final rate of earnings  is  at  least
19    $5,500  but  less  than $6,500, (5) $144 if the final rate of
20    earnings is at least $6,500 but less than $7,500, (6) $156 if
21    the final rate of earnings is at least $7,500 but  less  than
22    $8,500,  (7)  $168  if the final rate of earnings is at least
23    $8,500 but less than $9,500, and (8) $180 if the  final  rate
24    of  earnings  is  $9,500 or more, except that the annuity for
25    those  persons  having  made  an   election   under   Section
26    15-154(a-1)   shall  be  calculated  and  payable  under  the
27    portable  retirement  benefit   program   pursuant   to   the
28    provisions of Section 15-136.4.
29        Rule  4:  A participant who is at least age 50 and has 25
30    or more years of service as a police officer or  firefighter,
31    and  a  participant who is age 55 or over and has at least 20
32    but less than 25 years of service  as  a  police  officer  or
33    firefighter,  shall  be  entitled  to a retirement annuity of
34    2 1/4% of the final rate of earnings for each of the first 10
 
                            -22-               LRB9205250EGfg
 1    years of service as a police officer or  firefighter,  2 1/2%
 2    for  each of the next 10 years of service as a police officer
 3    or firefighter, and 2 3/4% for each  year  of  service  as  a
 4    police   officer   or  firefighter  in  excess  of  20.   The
 5    retirement annuity for all other service  shall  be  computed
 6    under Rule 1.
 7        For purposes of this Rule 4, a participant's service as a
 8    firefighter shall also include the following:
 9             (i)  service  that  is performed while the person is
10        an employee under subsection (h) of Section 15-107; and
11             (ii)  in  the  case  of  an  individual  who  was  a
12        participating employee employed in the fire department of
13        the  University  of  Illinois's  Champaign-Urbana  campus
14        immediately  prior  to  the  elimination  of  that   fire
15        department  and  who immediately after the elimination of
16        that fire department transferred to another job with  the
17        University  of Illinois, service performed as an employee
18        of the University of Illinois in a  position  other  than
19        police  officer  or  firefighter,  from  the date of that
20        transfer until the employee's next termination of service
21        with the University of Illinois.
22        Rule 5:  The retirement  annuity  of  a  participant  who
23    elected  early  retirement  under  the  provisions of Section
24    15-136.2 and who, on or before  February  16,  1995,  brought
25    administrative  proceedings  pursuant  to  the administrative
26    rules adopted by the System to challenge the  calculation  of
27    his  or  her  retirement  annuity  shall  be  the  sum of the
28    following,  determined   from   amounts   credited   to   the
29    participant  in  accordance with the actuarial tables and the
30    prescribed rate  of  interest  in  effect  at  the  time  the
31    retirement annuity begins:
32             (i)  the  normal annuity which can be provided on an
33        actuarially equivalent basis, by the  accumulated  normal
34        contributions as of the date the annuity begins; and
 
                            -23-               LRB9205250EGfg
 1             (ii)  an  annuity  from employer contributions of an
 2        amount  equal  to  that  which  can  be  provided  on  an
 3        actuarially equivalent basis from the accumulated  normal
 4        contributions  made  by  the  participant  under  Section
 5        15-113.6  and  Section  15-113.7 plus 1.4 times all other
 6        accumulated normal contributions made by the participant;
 7        and
 8             (iii)  an  annuity  which  can  be  provided  on  an
 9        actuarially   equivalent   basis   from   the    employee
10        contribution for early retirement under Section 15-136.2,
11        and  an  annuity from employer contributions of an amount
12        equal to that which can be  provided  on  an  actuarially
13        equivalent basis from the employee contribution for early
14        retirement under Section 15-136.2.
15        In  no event shall a retirement annuity under this Rule 5
16    be lower than the amount obtained by adding (1)  the  monthly
17    amount   obtained  by  dividing  the  combined  employee  and
18    employer contributions made under  Section  15-136.2  by  the
19    System's annuity factor for the age of the participant at the
20    beginning  of  the  annuity payment period and (2) the amount
21    equal to the participant's annuity if calculated  under  Rule
22    1, reduced under Section 15-136(b) as if no contributions had
23    been made under Section 15-136.2.
24        With  respect  to  a  participant  who is qualified for a
25    retirement annuity under this Rule 5 whose retirement annuity
26    began before the effective date of this amendatory Act of the
27    91st General Assembly, and for whom an employee  contribution
28    was made under Section 15-136.2, the System shall recalculate
29    the  retirement  annuity  under this Rule 5 and shall pay any
30    additional amounts due in  the  manner  provided  in  Section
31    15-186.1 for benefits mistakenly set too low.
32        The  amount of a retirement annuity calculated under this
33    Rule 5 shall  be  computed  solely  on  the  basis  of  those
34    contributions  specifically set forth in this Rule 5.  Except
 
                            -24-               LRB9205250EGfg
 1    as provided in clause  (iii)  of  this  Rule  5,  neither  an
 2    employee nor employer contribution for early retirement under
 3    Section  15-136.2, nor any other employer contribution, shall
 4    be used in the calculation of  the  amount  of  a  retirement
 5    annuity under this Rule 5.
 6        The General Assembly has adopted the changes set forth in
 7    Section  25  of  this  amendatory  Act  of  the  91st General
 8    Assembly in recognition that the decision  of  the  Appellate
 9    Court for the Fourth District in Mattis v. State Universities
10    Retirement  System  et al. might be deemed to give some right
11    to the plaintiff in that case.  The changes made  by  Section
12    25  of this amendatory Act of the 91st General Assembly are a
13    legislative implementation of the decision of  the  Appellate
14    Court for the Fourth District in Mattis v. State Universities
15    Retirement System et al. with respect to that plaintiff.
16        The  changes made by Section 25 of this amendatory Act of
17    the 91st General Assembly apply without regard to whether the
18    person is in service as an employee on or after its effective
19    date.
20        (b)  The retirement annuity provided under Rules 1 and  3
21    above  shall  be  reduced  by  1/2  of  1% for each month the
22    participant is under  age  60  at  the  time  of  retirement.
23    However,  this  reduction  shall  not  apply in the following
24    cases:
25             (1)  For a  disabled  participant  whose  disability
26        benefits  have  been  discontinued  because he or she has
27        exhausted  eligibility  for  disability  benefits   under
28        clause (6) of Section 15-152;
29             (2)  For  a  participant who has at least the number
30        of years of service required to retire at any  age  under
31        subsection (a) of Section 15-135; or
32             (3)  For  that portion of a retirement annuity which
33        has  been  provided  on  account  of   service   of   the
34        participant  during  periods when he or she performed the
 
                            -25-               LRB9205250EGfg
 1        duties of a  police  officer  or  firefighter,  if  these
 2        duties  were  performed  for at least 5 years immediately
 3        preceding the date the retirement annuity is to begin.
 4        (c)  The maximum retirement annuity provided under  Rules
 5    1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
 6    benefits  as specified in Section 415 of the Internal Revenue
 7    Code of 1986, as such Section may be  amended  from  time  to
 8    time  and  as  such  benefit  limits shall be adjusted by the
 9    Commissioner of Internal Revenue, and (2) 80% of  final  rate
10    of earnings.
11        (d)  An  annuitant whose status as an employee terminates
12    after August 14, 1969 shall receive  automatic  increases  in
13    his or her retirement annuity as follows:
14        Effective  January  1  immediately following the date the
15    retirement annuity begins, the  annuitant  shall  receive  an
16    increase  in  his or her monthly retirement annuity of 0.125%
17    of the monthly retirement annuity provided under Rule 1, Rule
18    2, Rule 3, Rule 4, or Rule  5,  contained  in  this  Section,
19    multiplied  by  the  number of full months which elapsed from
20    the date the retirement annuity payments began to January  1,
21    1972,  plus 0.1667% of such annuity, multiplied by the number
22    of full months which elapsed from January  1,  1972,  or  the
23    date  the  retirement  annuity  payments  began, whichever is
24    later, to  January  1,  1978,  plus  0.25%  of  such  annuity
25    multiplied  by  the  number of full months which elapsed from
26    January 1, 1978, or the date the retirement annuity  payments
27    began,  whichever  is  later,  to  the  effective date of the
28    increase.
29        The annuitant shall receive an increase  in  his  or  her
30    monthly  retirement  annuity  on  each  January  1 thereafter
31    during the annuitant's life of  3%  of  the  monthly  annuity
32    provided  under  Rule  1,  Rule  2, Rule 3, Rule 4, or Rule 5
33    contained in  this  Section.   The  change  made  under  this
34    subsection  by  P.A.  81-970 is effective January 1, 1980 and
 
                            -26-               LRB9205250EGfg
 1    applies  to  each  annuitant  whose  status  as  an  employee
 2    terminates before or after that date.
 3        Beginning January 1, 1990, all automatic annual increases
 4    payable  under  this  Section  shall  be  calculated   as   a
 5    percentage  of  the  total annuity payable at the time of the
 6    increase, including all increases  previously  granted  under
 7    this Article.
 8        The  change  made  in  this subsection by P.A. 85-1008 is
 9    effective January 26, 1988, and is applicable without  regard
10    to whether status as an employee terminated before that date.
11        (e)  If,  on  January 1, 1987, or the date the retirement
12    annuity payment period begins, whichever is later, the sum of
13    the retirement annuity provided under Rule 1  or  Rule  2  of
14    this  Section  and  the  automatic  annual increases provided
15    under the preceding subsection or Section  15-136.1,  amounts
16    to  less  than the retirement annuity which would be provided
17    by Rule 3, the retirement annuity shall be  increased  as  of
18    January  1,  1987, or the date the retirement annuity payment
19    period begins, whichever is later, to the amount which  would
20    be  provided by Rule 3 of this Section. Such increased amount
21    shall be considered as the retirement annuity in  determining
22    benefits  provided under other Sections of this Article. This
23    paragraph applies without regard  to  whether  status  as  an
24    employee   terminated  before  the  effective  date  of  this
25    amendatory Act of  1987,  provided  that  the  annuitant  was
26    employed  at  least  one-half time during the period on which
27    the final rate of earnings was based.
28        (f)  A participant is entitled to such additional annuity
29    as may be provided on an actuarially equivalent basis, by any
30    accumulated additional contributions to his  or  her  credit.
31    However, the additional contributions made by the participant
32    toward the automatic increases in annuity provided under this
33    Section  shall  not  be taken into account in determining the
34    amount of such additional annuity.
 
                            -27-               LRB9205250EGfg
 1        (g)  If, (1) by law, a function of a  governmental  unit,
 2    as  defined by Section 20-107 of this Code, is transferred in
 3    whole or in part  to  an  employer,  and  (2)  a  participant
 4    transfers  employment  from  such  governmental  unit to such
 5    employer within 6 months after the transfer of the  function,
 6    and (3) the sum of (A) the annuity payable to the participant
 7    under  Rule  1,  2, or 3 of this Section (B) all proportional
 8    annuities payable to the participant by all other  retirement
 9    systems  covered  by  Article 20, and (C) the initial primary
10    insurance amount to which the participant is  entitled  under
11    the  Social Security Act, is less than the retirement annuity
12    which would have been payable if  all  of  the  participant's
13    pension  credits  validated  under  Section  20-109  had been
14    validated under this system, a supplemental annuity equal  to
15    the  difference  in  such  amounts  shall  be  payable to the
16    participant.
17        (h)  On January 1, 1981, an annuitant who was receiving a
18    retirement annuity on or before January 1,  1971  shall  have
19    his  or  her  retirement annuity then being paid increased $1
20    per month for each year of creditable service. On January  1,
21    1982,  an  annuitant  whose  retirement  annuity  began on or
22    before January 1, 1977, shall  have  his  or  her  retirement
23    annuity  then being paid increased $1 per month for each year
24    of creditable service.
25        (i)  On January 1, 1987, any annuitant  whose  retirement
26    annuity  began  on  or before January 1, 1977, shall have the
27    monthly retirement annuity increased by an amount equal to 8¢
28    per year of creditable service times the number of years that
29    have elapsed since the annuity began.
30        (j)  On July 1, 2001, every annuitant who began receiving
31    a retirement annuity before January 1, 1980  shall  have  the
32    monthly  retirement  annuity  increased  by  whichever of the
33    following percentages is applicable:
34              5% if the annuity began in 1979;
 
                            -28-               LRB9205250EGfg
 1             10% if the annuity began in 1978;
 2             14% if the annuity began in 1977;
 3             14% if the annuity began in 1976;
 4             18% if the annuity began in 1975;
 5             23% if the annuity began in 1974;
 6             32% if the annuity began in 1973 or before.
 7        The increase under this subsection shall be calculated as
 8    a percentage of the amount of the retirement annuity  payable
 9    on June 30, 2001, including any increases previously received
10    under  this Article, and shall be included in the calculation
11    of increases granted thereafter under subsection (d).
12    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
13    eff. 8-16-97; 90-576, eff.  3-31-98;  90-655,  eff.  7-30-98;
14    90-766,  eff.  8-14-98;  91-887  (Sections  20  and 25), eff.
15    7-6-00; revised 8-31-00.)

16        (40 ILCS 5/15-136.3)
17        Sec. 15-136.3. Minimum retirement annuity.
18        (a)  Beginning  January  1,  1997,  any  person  who   is
19    receiving  a  monthly  retirement  annuity under this Article
20    which, after inclusion of  (1)  all  one-time  and  automatic
21    annual  increases  to  which  the person is entitled, (2) any
22    supplemental annuity payable under Section 15-136.1, and  (3)
23    any amount deducted under Section 15-138 or 15-140 to provide
24    a  reversionary  annuity,  is  less  than the minimum monthly
25    retirement benefit amount specified in subsection (b) of this
26    Section, shall be entitled to a monthly supplemental  payment
27    equal to the difference.
28        (b)  For  purposes  of the calculation in subsection (a),
29    the minimum monthly retirement benefit amount is the  sum  of
30    $25  for  each  year of service credit, up to a maximum of 30
31    years of service, plus the amount of the increase received by
32    the annuitant under subsection (j) of Section 15-136, if any.
33        (c)  This Section applies  to  all  persons  receiving  a
 
                            -29-               LRB9205250EGfg
 1    retirement  annuity  under  this  Article,  without regard to
 2    whether or not employment terminated prior to  the  effective
 3    date of this Section.
 4    (Source: P.A. 89-616, eff. 8-9-96.)

 5        (40 ILCS 5/15-137.1 new)
 6        Sec.  15-137.1.  Reduction  of  purchasing power; policy;
 7    report; increase.
 8        (a)  The General Assembly finds and declares that:
 9             (1)  The purchasing power of a fixed annuity can  be
10        eroded   over  time  by  the  effects  of  inflation  and
11        increases in the general cost of living.
12             (2)  For a person whose income consists primarily of
13        a  fixed  annuity,  the  reduction  in  purchasing  power
14        resulting from increases in the cost of living can become
15        catastrophic over time, transforming  a  once-comfortable
16        retirement into a time of poverty and need.
17             (3)  The  State  of  Illinois is concerned about the
18        effects that a significant reduction in purchasing  power
19        can  have on the quality of life of retired employees and
20        their survivors.
21             (4)  The General Assembly has  previously  addressed
22        this  concern by providing for automatic annual increases
23        in  retirement  and  survivor's  annuities   under   this
24        Article.    Recognizing   that   these  automatic  annual
25        increases, by themselves, are not a  complete  answer  in
26        times  of  high inflation, the General Assembly has also,
27        from time to time, provided specific  one-time  increases
28        in annuities for certain categories of annuitants.
29        (b)  It  is  the  public  policy  of  this  State and the
30    intention of  the  General  Assembly  to  protect  annuitants
31    against  significant decreases in the purchasing power of the
32    retirement  and  survivor's  annuities  granted  under   this
33    Article.
 
                            -30-               LRB9205250EGfg
 1        (c)  The  System  shall regularly review the changes that
 2    have occurred in the purchasing power of the  retirement  and
 3    survivor's  annuities  being  paid under this Article, and it
 4    shall report to the General Assembly, the Governor,  and  the
 5    Pension  Laws  Commission  whenever  it  determines  that the
 6    original purchasing power of those annuities has been reduced
 7    by 20% or more for any category or group of annuitants.   The
 8    System may include in the report its recommendations, if any,
 9    for legislative action to address its findings.
10        (d)  As  used  in  this Section, the term "retirement and
11    survivor's annuities"  means  all  retirement  annuities  and
12    those  survivors insurance benefits payable in the form of an
13    annuity.
14        (e)  This Section does not apply to  any  benefits  under
15    the self-managed plan.

16        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
17        Sec.  15-145.   Survivors  insurance benefits; conditions
18    and amounts.
19        (a)  The survivors insurance benefits provided under this
20    Section shall be payable  to  the  eligible  survivors  of  a
21    participant  covered  under  the  traditional benefit package
22    upon the death of (1) a participating employee with at  least
23    1 1/2  years  of  service,  (2)  a participant who terminated
24    employment with at least 10 years  of  service,  and  (3)  an
25    annuitant  in  receipt  of a retirement annuity or disability
26    retirement annuity under this Article.
27        Service under the State Employees' Retirement  System  of
28    Illinois,  the  Teachers'  Retirement  System of the State of
29    Illinois  and  the  Public  School  Teachers'   Pension   and
30    Retirement Fund of Chicago shall be considered in determining
31    eligibility for survivors benefits under this Section.
32        If  by law, a function of a governmental unit, as defined
33    by Section 20-107, is transferred in whole or in part  to  an
 
                            -31-               LRB9205250EGfg
 1    employer,  and  an  employee  transfers  employment from this
 2    governmental unit to such employer within 6 months after  the
 3    transfer  of  this  function,  the  service  credits  in  the
 4    governmental   unit's   retirement  system  which  have  been
 5    validated  under  Section  20-109  shall  be  considered   in
 6    determining  eligibility  for  survivors  benefits under this
 7    Section.
 8        (b)  A surviving spouse of a deceased participant, or  of
 9    a  deceased annuitant who did not take a refund or additional
10    annuity  consisting  of   accumulated   survivors   insurance
11    contributions,  shall  receive  a survivors annuity of 30% of
12    the final rate of earnings.  Payments shall begin on the  day
13    following  the participant's or annuitant's death or the date
14    the surviving spouse attains age 50, whichever is later,  and
15    continue  until  the  death  of  the  surviving  spouse.  The
16    annuity shall be payable to the  surviving  spouse  prior  to
17    attainment  of  age  50 if the surviving spouse has in his or
18    her care a deceased participant's  or  annuitant's  dependent
19    unmarried  child  under  age  18 (under age 22 if a full-time
20    student) who is eligible for a survivors annuity.  Remarriage
21    of a surviving spouse prior to  attainment  of  age  55  that
22    occurs  before  the  effective date of this amendatory Act of
23    the 91st General Assembly shall disqualify him or her for the
24    receipt of a survivors annuity.
25        (c)  Each dependent unmarried child under age  18  (under
26    age  22 if a full-time student) of a deceased participant, or
27    of a  deceased  annuitant  who  did  not  take  a  refund  or
28    additional   annuity   consisting  of  accumulated  survivors
29    insurance contributions, shall receive  a  survivors  annuity
30    equal  to  the  sum of (1) 20% of the final rate of earnings,
31    and (2) 10% of the final rate  of  earnings  divided  by  the
32    number  of children entitled to this benefit.  Payments shall
33    begin on the day following the participant's  or  annuitant's
34    death  and continue until the child marries, dies, or attains
 
                            -32-               LRB9205250EGfg
 1    age 18 (age 22 if a full-time student).  If the child  is  in
 2    the  care of a surviving spouse who is eligible for survivors
 3    insurance benefits, the child's benefit shall be paid to  the
 4    surviving spouse.
 5        Each   unmarried   child   over  age  18  of  a  deceased
 6    participant or of a deceased annuitant who had  a  survivor's
 7    insurance  beneficiary  at the time of his or her retirement,
 8    and who was dependent upon the participant  or  annuitant  by
 9    reason  of  a physical or mental disability which began prior
10    to the date the child attained age 18 (age 22 if a  full-time
11    student), shall receive a survivor's annuity equal to the sum
12    of  (1) 20% of the final rate of earnings, and (2) 10% of the
13    final rate of earnings divided  by  the  number  of  children
14    entitled  to survivors benefits.  Payments shall begin on the
15    day following the  participant's  or  annuitant's  death  and
16    continue  until  the  child  marries,  dies,  or is no longer
17    disabled.  If the child is in the care of a surviving  spouse
18    who is eligible for survivors insurance benefits, the child's
19    benefit  may  be  paid  to  the  surviving  spouse.   For the
20    purposes of  this  Section,  disability  means  inability  to
21    engage  in  any substantial gainful activity by reason of any
22    medically determinable physical or mental impairment that can
23    be expected to result in death or that has lasted or  can  be
24    expected  to  last  for  a  continuous period of at least one
25    year.
26        (d)  Each dependent parent of a deceased participant,  or
27    of  a  deceased  annuitant  who  did  not  take  a  refund or
28    additional  annuity  consisting  of   accumulated   survivors
29    insurance  contributions,  shall  receive a survivors annuity
30    equal to the sum of (1) 20% of final rate  of  earnings,  and
31    (2)  10%  of  final rate of earnings divided by the number of
32    parents who qualify for the benefit.   Payments  shall  begin
33    when  the  parent  reaches  age  55  or the day following the
34    participant's or annuitant's death, whichever is  later,  and
 
                            -33-               LRB9205250EGfg
 1    continue until the parent dies.  Remarriage of a parent prior
 2    to  attainment  of age 55 shall disqualify the parent for the
 3    receipt of a survivors annuity.
 4        (e)  In addition to the survivors annuity provided above,
 5    each survivors insurance beneficiary shall, upon death of the
 6    participant or annuitant,  receive  a  lump  sum  payment  of
 7    $1,000 divided by the number of such beneficiaries.
 8        (f)  The  changes  made  in  this  Section  by Public Act
 9    81-712  pertaining  to  survivors  annuities  in   cases   of
10    remarriage  prior  to  age  55  shall apply to each survivors
11    insurance beneficiary who  remarries  after  June  30,  1979,
12    regardless  of  the  date  that  the participant or annuitant
13    terminated his employment or died.
14        The change made to this Section by this amendatory Act of
15    the 91st General Assembly, pertaining to remarriage prior  to
16    age  55,  applies  without  regard  to  whether  the deceased
17    participant or annuitant was  in  service  on  or  after  the
18    effective  date  of  this  amendatory Act of the 91st General
19    Assembly.
20        (g)  On January 1, 1981, any person who was  receiving  a
21    survivors annuity on or before January 1, 1971 shall have the
22    survivors  annuity  then  being paid increased by 1% for each
23    full year which has elapsed from the date the annuity  began.
24    On  January  1,  1982, any survivor whose annuity began after
25    January 1, 1971, but before January 1, 1981, shall  have  the
26    survivor's  annuity  then being paid increased by 1% for each
27    year which has elapsed from the date the  survivor's  annuity
28    began. On January 1, 1987, any survivor who began receiving a
29    survivor's  annuity  on or before January 1, 1977, shall have
30    the monthly survivor's annuity increased by $1 for each  full
31    year  which has elapsed since the date the survivor's annuity
32    began.
33        (g-1)  On July 1, 2001, every recipient of  a  survivor's
34    annuity  whose  original annuity began before January 1, 1980
 
                            -34-               LRB9205250EGfg
 1    shall  have  the  monthly  survivor's  annuity  increased  by
 2    whichever of the following percentages is applicable:
 3              5% if the original annuity began in 1979;
 4             10% if the original annuity began in 1978;
 5             14% if the original annuity began in 1977;
 6             14% if the original annuity began in 1976;
 7             18% if the original annuity began in 1975;
 8             23% if the original annuity began in 1974;
 9             32% if the original annuity began in 1973 or before.
10        In the case of the survivor of a deceased  annuitant  who
11    died while receiving a retirement annuity, "original annuity"
12    means  the  deceased  annuitant's  retirement annuity; in all
13    other cases, "original annuity" means the survivor's annuity.
14        The increase under this subsection shall be calculated as
15    a percentage of the amount of the survivor's annuity  payable
16    on June 30, 2001, including any increases previously received
17    under  this Article, and shall be included in the calculation
18    of increases granted thereafter under subsection (j).
19        (h)  If the  sum  of  the  lump  sum  and  total  monthly
20    survivor  benefits  payable under this Section upon the death
21    of a participant amounts to less than the sum  of  the  death
22    benefits  payable  under items (2) and (3) of Section 15-141,
23    the difference shall be paid in a lump sum to the beneficiary
24    of the participant who  is  living  on  the  date  that  this
25    additional amount becomes payable.
26        (i)  If  the  sum  of  the  lump  sum  and  total monthly
27    survivor benefits payable under this Section upon  the  death
28    of  an annuitant receiving a retirement annuity or disability
29    retirement annuity amounts to less  than  the  death  benefit
30    payable under Section 15-142, the difference shall be paid to
31    the  beneficiary  of  the annuitant who is living on the date
32    that this additional amount becomes payable.
33        (j)  Effective on the later of (1) January  1,  1990,  or
34    (2)  the  January  1  on  or next after the date on which the
 
                            -35-               LRB9205250EGfg
 1    survivor annuity begins, if the deceased  member  died  while
 2    receiving  a  retirement  annuity,  or in all other cases the
 3    January 1 nearest the  first  anniversary  of  the  date  the
 4    survivor  annuity  payments  begin, every survivors insurance
 5    beneficiary shall receive an increase in his or  her  monthly
 6    survivors annuity of 3%.  On each January 1 after the initial
 7    increase, the monthly survivors annuity shall be increased by
 8    3%  of  the  total  survivors  annuity  provided  under  this
 9    Article,   including  previous  increases  provided  by  this
10    subsection.  Such increases  shall  apply  to  the  survivors
11    insurance  beneficiaries  of  each participant and annuitant,
12    whether or not the employment status of  the  participant  or
13    annuitant  terminates  before  the  effective  date  of  this
14    amendatory  Act of 1990.  This subsection (j) also applies to
15    persons receiving  a  survivor  annuity  under  the  portable
16    benefit package.
17        (k)  If  the  Internal  Revenue Code of 1986, as amended,
18    requires that the survivors benefits be  payable  at  an  age
19    earlier  than  that  specified  in  this Section the benefits
20    shall  begin  at  the  earlier  age,  in  which  event,   the
21    survivor's  beneficiary shall be entitled only to that amount
22    which is equal to the actuarial equivalent  of  the  benefits
23    provided by this Section.
24        (l)  The  changes made to this Section and Section 15-131
25    by this amendatory Act of  1997,  relating  to  benefits  for
26    certain  unmarried  children who are full-time students under
27    age 22, apply without regard to whether the  deceased  member
28    was  in  service  on  or  after  the  effective  date of this
29    amendatory Act of 1997.  These changes do not  authorize  the
30    repayment  of  a refund or a re-election of benefits, and any
31    benefit or increase in benefits resulting from these  changes
32    is  not  payable  retroactively  for  any  period  before the
33    effective date of this amendatory Act of 1997.
34    (Source: P.A. 90-448, eff.  8-16-97;  90-766,  eff.  8-14-98;
 
                            -36-               LRB9205250EGfg
 1    91-887, eff. 7-6-00.)

 2        (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
 3        Sec. 15-155.  Employer contributions.
 4        (a)  The  State  of  Illinois shall make contributions by
 5    appropriations of amounts  which,  together  with  the  other
 6    employer  contributions from trust, federal, and other funds,
 7    employee contributions, income from  investments,  and  other
 8    income of this System, will be sufficient to meet the cost of
 9    maintaining  and  administering  the  System  on a 90% funded
10    basis in accordance with actuarial recommendations.
11        The  Board  shall   determine   the   amount   of   State
12    contributions  required  for each fiscal year on the basis of
13    the actuarial tables and other  assumptions  adopted  by  the
14    Board  and  the  recommendations  of  the  actuary, using the
15    formulae formula in subsection (a-1)  and  subsection  (a-2).
16    The  minimum  contribution  to  the  System to be made by the
17    State for each fiscal year shall be the  sum  of  the  amount
18    determined  under  subsection (a-1) and the amount determined
19    under subsection (a-2).
20        (a-1)  For State fiscal  years  2011  through  2045,  the
21    minimum  contribution  to  the System to be made by the State
22    for each fiscal year shall be an  amount  determined  by  the
23    System  to  be  sufficient  to  bring the total assets of the
24    System up to 90% of the total actuarial  liabilities  of  the
25    System  (other  than  the liabilities described in subsection
26    (a-2) of this Section) by the end of State fiscal year  2045.
27    In   making   these   determinations,   the   required  State
28    contribution  shall  be  calculated  each  year  as  a  level
29    percentage  of  payroll  over  the  years  remaining  to  and
30    including fiscal year 2045 and shall be determined under  the
31    projected unit credit actuarial cost method.
32        For  State  fiscal  years  1996  through  2010, the State
33    contribution to the System, as a percentage of the applicable
 
                            -37-               LRB9205250EGfg
 1    employee  payroll,  shall  be  increased  in   equal   annual
 2    increments  so  that  by State fiscal year 2011, the State is
 3    contributing at the rate required under this Section.
 4        Beginning in State fiscal year 2046,  the  minimum  State
 5    contribution  for each fiscal year shall be the amount needed
 6    to maintain the total assets of the  System  at  90%  of  the
 7    total actuarial liabilities of the System.
 8        (a-2)  The cost of the one-time increases granted by this
 9    amendatory  Act of the 92nd General Assembly under subsection
10    (j) of Section 15-136, subsection  (b)  of  Section  15-136.3
11    (insofar  as  it  derives from that subsection (j) increase),
12    and subsection (g-1) of Section 15-145 shall be paid  by  the
13    State  on  a  level  dollar  basis  over a period of 10 years
14    beginning July 1, 2003.  These contributions are in  addition
15    to,  and  shall not be included in in the calculation of, the
16    State contribution required under subsection (a-1).
17        (b)  If an employee is paid from trust or federal  funds,
18    the  employer shall pay to the Board contributions from those
19    funds which are sufficient to cover the accruing normal costs
20    on behalf of the  employee.    However,  universities  having
21    employees  who  are compensated out of local auxiliary funds,
22    income funds, or service enterprise funds are not required to
23    pay such contributions on behalf  of  those  employees.   The
24    local  auxiliary  funds, income funds, and service enterprise
25    funds of universities shall not be considered trust funds for
26    the  purpose  of  this   Article,   but   funds   of   alumni
27    associations,  foundations,  and  athletic associations which
28    are affiliated with the universities  included  as  employers
29    under  this  Article and other employers which do not receive
30    State appropriations are considered to be trust funds for the
31    purpose of this Article.
32        (b-1)  The City of Urbana and the City of Champaign shall
33    each make employer contributions to  this  System  for  their
34    respective  firefighter  employees  who  participate  in this
 
                            -38-               LRB9205250EGfg
 1    System pursuant to subsection (h)  of  Section  15-107.   The
 2    rate  of  contributions  to  be  made by those municipalities
 3    shall be determined annually by the Board on the basis of the
 4    actuarial  assumptions  adopted  by   the   Board   and   the
 5    recommendations  of  the actuary, and shall be expressed as a
 6    percentage of salary for each such employee.  The Board shall
 7    certify the rate to the affected municipalities  as  soon  as
 8    may  be practical.  The employer contributions required under
 9    this subsection shall be remitted by the municipality to  the
10    System  at  the  same time and in the same manner as employee
11    contributions.
12        (c)  Through State fiscal year 1995: The  total  employer
13    contribution  shall be apportioned among the various funds of
14    the State and other employers,  whether  trust,  federal,  or
15    other funds, in accordance with actuarial procedures approved
16    by  the board.  State of Illinois contributions for employers
17    receiving State appropriations for personal services shall be
18    payable from appropriations made to the employers or  to  the
19    System.   The  contributions  for  Class I community colleges
20    covering earnings  other  than  those  paid  from  trust  and
21    federal funds, shall be payable solely from appropriations to
22    the  Illinois  Community  College  Board  or  the  System for
23    employer contributions.
24        (d)  Beginning in State fiscal year  1996,  the  required
25    State  contributions  to  the  System  shall  be appropriated
26    directly to the System and shall be payable through  vouchers
27    issued in accordance with subsection (c) of Section 15-165.
28        (e)  The State Comptroller shall draw warrants payable to
29    the  System upon proper certification by the System or by the
30    employer in accordance with the appropriation laws  and  this
31    Code.
32        (f)  Normal  costs under this Section means liability for
33    pensions and other  benefits  which  accrues  to  the  System
34    because  of  the  credits  earned for service rendered by the
 
                            -39-               LRB9205250EGfg
 1    participants  during  the  fiscal  year   and   expenses   of
 2    administering the System, but shall not include the principal
 3    of  or any redemption premium or interest on any bonds issued
 4    by the board or any expenses incurred or deposits required in
 5    connection therewith.
 6    (Source: P.A. 89-602, eff. 8-2-96; 90-576, eff. 3-31-98.)

 7        (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
 8        Sec. 15-165.  To certify amounts and submit vouchers.
 9        (a)  The Board shall certify to the Governor on or before
10    November 15 of each  year  the  appropriation  required  from
11    State funds for the purposes of this System for the following
12    fiscal  year.   The certification shall include a copy of the
13    actuarial recommendations upon which it is based.
14        (b)  The Board shall certify to the State Comptroller  or
15    employer,  as  the  case  may  be,  from time to time, by its
16    president and secretary, with its seal attached, the  amounts
17    payable to the System from the various funds.
18        (c)  Beginning  in  State fiscal year 1996, on or as soon
19    as possible after the 15th day of each month the Board  shall
20    submit  vouchers  for  payment  of State contributions to the
21    System, in a total  monthly  amount  of  one-twelfth  of  the
22    required annual State contribution certified under subsection
23    (a).   These  vouchers shall be paid by the State Comptroller
24    and Treasurer by warrants drawn on the funds appropriated  to
25    the System for that fiscal year.
26        If  in any month the amount remaining unexpended from all
27    other appropriations to the System for the applicable  fiscal
28    year  (including  the  appropriations  to  the  System  under
29    Section  8.12  of  the State Finance Act and Section 1 of the
30    State Pension Funds Continuing  Appropriation  Act)  is  less
31    than  the  amount  lawfully vouchered under this Section, the
32    difference shall be paid from the General Revenue Fund  under
33    the  continuing  appropriation  authority provided in Section
 
                            -40-               LRB9205250EGfg
 1    1.1 of the State Pension Funds Continuing Appropriation Act.
 2        (d)  So long as the payments received are the full amount
 3    lawfully vouchered under this Section, payments  received  by
 4    the  System  under this Section shall be applied first toward
 5    the  employer   contribution   to   the   self-managed   plan
 6    established   under  Section  15-158.2.   Payments  shall  be
 7    applied second toward the employer's portion  of  the  normal
 8    costs  of the System, as defined in subsection (f) of Section
 9    15-155.  The balance shall be  applied  toward  the  unfunded
10    actuarial liabilities of the System.
11        (e)  In  the event that the System does not receive, as a
12    result  of  legislative  enactment  or  otherwise,   payments
13    sufficient  to  fully  fund  the employer contribution to the
14    self-managed plan established under Section 15-158.2  and  to
15    fully  fund  that  portion  of  the employer's portion of the
16    normal costs of the System, as calculated in accordance  with
17    subsections  (a-1)  and  (a-2) of Section 15-155 15-155(a-1),
18    then any payments received shall be  applied  proportionately
19    to  the optional retirement program established under Section
20    15-158.2 and to the employer's portion of the normal costs of
21    the System, as  calculated  in  accordance  with  subsections
22    (a-1) and (a-2) of Section 15-155 15-155(a-1).
23    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

24        (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
25        Sec. 16-133.1.  Automatic annual increase in annuity.
26        (a)  Each  member with creditable service and retiring on
27    or after August 26, 1969 is entitled to the automatic  annual
28    increases  in  annuity  provided  under  this  Section  while
29    receiving  a  retirement  annuity  or  disability  retirement
30    annuity from the system.
31        An  annuitant  shall  first  be  entitled  to  an initial
32    increase under this Section on the January 1  next  following
33    the first anniversary of retirement, or January 1 of the year
 
                            -41-               LRB9205250EGfg
 1    next  following attainment of age 61, whichever is later.  At
 2    such  time,  the  system  shall  pay  an   initial   increase
 3    determined as follows:
 4             (1)  1.5%   of  the  originally  granted  retirement
 5        annuity or disability retirement  annuity  multiplied  by
 6        the  number  of  years  elapsed, if any, from the date of
 7        retirement until January 1, 1972, plus
 8             (2)  2% of the originally granted annuity multiplied
 9        by the number of years elapsed, if any, from the date  of
10        retirement  or January 1, 1972, whichever is later, until
11        January 1, 1978, plus
12             (3)  3% of the originally granted annuity multiplied
13        by  the  number  of  years  elapsed  from  the  date   of
14        retirement  or January 1, 1978, whichever is later, until
15        the effective date of the initial increase.
16    However, the initial annual increase  calculated  under  this
17    Section  for the recipient of a disability retirement annuity
18    granted under Section 16-149.2 shall be reduced by an  amount
19    equal  to the total of all increases in that annuity received
20    under Section 16-149.5 (but not exceeding 100% of the  amount
21    of   the  initial  increase  otherwise  provided  under  this
22    Section).
23        Following  the   initial   increase,   automatic   annual
24    increases  in  annuity  shall  be  payable  on each January 1
25    thereafter during the lifetime of the  annuitant,  determined
26    as  a percentage of the originally granted retirement annuity
27    or disability retirement annuity for increases granted  prior
28    to  January  1,  1990,  and calculated as a percentage of the
29    total amount of annuity, including previous  increases  under
30    this  Section,  for  increases granted on or after January 1,
31    1990, as follows:  1.5% for periods prior to January 1, 1972,
32    2% for periods after December 31, 1971 and prior  to  January
33    1, 1978, and 3% for periods after December 31, 1977.
34        (b)  The  automatic  annual increases in annuity provided
 
                            -42-               LRB9205250EGfg
 1    under this Section shall not be applicable  unless  a  member
 2    has  made  contributions  toward  such increases for a period
 3    equivalent to one full year of  creditable  service.    If  a
 4    member  contributes  for  service  performed after August 26,
 5    1969  but  the  member  becomes  an  annuitant  before   such
 6    contributions  amount  to one full year's contributions based
 7    on the salary at the date of retirement, he or  she  may  pay
 8    the  necessary balance of the contributions to the system and
 9    be eligible for the automatic  annual  increases  in  annuity
10    provided under this Section.
11        (c)  Each member shall make contributions toward the cost
12    of  the  automatic  annual  increases  in annuity as provided
13    under Section 16-152.
14        (d)  An  annuitant  receiving  a  retirement  annuity  or
15    disability  retirement  annuity  on   July   1,   1969,   who
16    subsequently  re-enters  service as a teacher is eligible for
17    the automatic annual increases in annuity provided under this
18    Section if he or she renders at least one year of  creditable
19    service following the latest re-entry.
20        (e)  In  addition  to  the  automatic annual increases in
21    annuity provided under this Section, an annuitant  who  meets
22    the service requirements of this Section and whose retirement
23    annuity  or  disability retirement annuity began on or before
24    January 1,  1971  shall  receive,  on  January  1,  1981,  an
25    increase  in  the  annuity  then being paid of one dollar per
26    month for each year of creditable  service.   On  January  1,
27    1982,  an  annuitant  whose  retirement annuity or disability
28    retirement annuity began on or before January 1,  1977  shall
29    receive  an  increase  in  the annuity then being paid of one
30    dollar per month for each year of creditable service.
31        On  January  1,  1987,  any  annuitant  whose  retirement
32    annuity began on or before January 1, 1977, shall receive  an
33    increase  in  the  monthly retirement annuity equal to 8¢ per
34    year of creditable service times the  number  of  years  that
 
                            -43-               LRB9205250EGfg
 1    have elapsed since the annuity began.
 2        (f)  On July 1, 2001, every annuitant who began receiving
 3    a  retirement  annuity  before January 1, 1980 shall have the
 4    monthly retirement annuity  increased  by  whichever  of  the
 5    following percentages is applicable:
 6              5% if the annuity began in 1979;
 7             10% if the annuity began in 1978;
 8             14% if the annuity began in 1977;
 9             14% if the annuity began in 1976;
10             18% if the annuity began in 1975;
11             23% if the annuity began in 1974;
12             32% if the annuity began in 1973 or before.
13        The increase under this subsection shall be calculated as
14    a  percentage of the amount of the retirement annuity payable
15    on June 30, 2001, including any increases previously received
16    under this Article, and shall be included in the  calculation
17    of increases granted thereafter under subsection (a).
18    (Source: P.A. 91-927, eff. 12-14-00.)

19        (40 ILCS 5/16-134.1 new)
20        Sec.  16-134.1.  Reduction  of  purchasing power; policy;
21    report; increase.
22        (a)  The General Assembly finds and declares that:
23             (1)  The purchasing power of a fixed annuity can  be
24        eroded   over  time  by  the  effects  of  inflation  and
25        increases in the general cost of living.
26             (2)  For a person whose income consists primarily of
27        a  fixed  annuity,  the  reduction  in  purchasing  power
28        resulting from increases in the cost of living can become
29        catastrophic over time, transforming  a  once-comfortable
30        retirement into a time of poverty and need.
31             (3)  The  State  of  Illinois is concerned about the
32        effects that a significant reduction in purchasing  power
33        can  have on the quality of life of retired employees and
 
                            -44-               LRB9205250EGfg
 1        their survivors.
 2             (4)  The General Assembly has  previously  addressed
 3        this  concern by providing for automatic annual increases
 4        in  retirement  and  survivor's  annuities   under   this
 5        Article.    Recognizing   that   these  automatic  annual
 6        increases, by themselves, are not a  complete  answer  in
 7        times  of  high inflation, the General Assembly has also,
 8        from time to time, provided specific  one-time  increases
 9        in annuities for certain categories of annuitants.
10        (b)  It  is  the  public  policy  of  this  State and the
11    intention of  the  General  Assembly  to  protect  annuitants
12    against  significant decreases in the purchasing power of the
13    retirement  and  survivor's  annuities  granted  under   this
14    Article.
15        (c)  The  System  shall regularly review the changes that
16    have occurred in the purchasing power of the  retirement  and
17    survivor's  annuities  being  paid under this Article, and it
18    shall report to the General Assembly, the Governor,  and  the
19    Pension  Laws  Commission  whenever  it  determines  that the
20    original purchasing power of those annuities has been reduced
21    by 20% or more for any category or group of annuitants.   The
22    System may include in the report its recommendations, if any,
23    for legislative action to address its findings.

24        (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
25        Sec. 16-143.1.  Increase in survivor benefits.
26        (a)  Beginning  January  1, 1990, each survivor's benefit
27    and each reversionary annuity payable  under  Section  16-136
28    shall  be  increased  by  3%  of the currently payable amount
29    thereof (1) on each January  1  occurring  on  or  after  the
30    commencement  of  the  annuity  if  the deceased teacher died
31    while  receiving  a  retirement  or   disability   retirement
32    annuity,  or  (2) in other cases, on each January 1 occurring
33    on or after the first anniversary  of  the  granting  of  the
 
                            -45-               LRB9205250EGfg
 1    benefit,  without  regard to whether the deceased teacher was
 2    in service on or after the effective date of this  amendatory
 3    Act  of  1991,  but  such  increases shall not accrue for any
 4    period prior to January 1, 1990.
 5        (b)  On  January  1,  1981,  any  beneficiary   who   was
 6    receiving  a  survivor's monthly benefit on or before January
 7    1, 1971, shall have the benefit then being paid increased  by
 8    1%  for  each  full year elapsed from the date the survivor's
 9    benefit began.  On January 1, 1982, any beneficiary who began
10    receiving a survivor's monthly benefit after January 1, 1971,
11    but before January 1, 1981 shall have the benefit then  being
12    paid  increased by 1% for each year elapsed from the date the
13    survivor's benefit began.
14        On  January  1,  1987,  any  beneficiary  whose   monthly
15    survivor's  benefit began on or before January 1, 1977, shall
16    have the monthly survivor's benefit increased by $1 for  each
17    full  year  which  has  elapsed since the date the survivor's
18    benefit began.
19        (c)  On July 1, 2001, every  recipient  of  a  survivor's
20    annuity  whose  original annuity began before January 1, 1980
21    shall  have  the  monthly  survivor's  annuity  increased  by
22    whichever of the following percentages is applicable:
23              5% if the original annuity began in 1979;
24             10% if the original annuity began in 1978;
25             14% if the original annuity began in 1977;
26             14% if the original annuity began in 1976;
27             18% if the original annuity began in 1975;
28             23% if the original annuity began in 1974;
29             32% if the original annuity began in 1973 or before.
30        In the case of the survivor of a deceased  annuitant  who
31    died while receiving a retirement annuity, "original annuity"
32    means  the  deceased  annuitant's  retirement annuity; in all
33    other cases, "original annuity" means the survivor's annuity.
34        The increase under this subsection shall be calculated as
 
                            -46-               LRB9205250EGfg
 1    a percentage of the amount of the survivor's annuity  payable
 2    on June 30, 2001, including any increases previously received
 3    under  this Article, and shall be included in the calculation
 4    of increases granted thereafter under subsection (a).
 5    (Source: P.A. 86-273; 86-1488.)

 6        (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
 7        Sec. 16-158.  Contributions by State and other  employing
 8    units.
 9        (a)  The  State shall make contributions to the System by
10    means of appropriations from the Common School Fund and other
11    State funds of amounts which, together  with  other  employer
12    contributions, employee contributions, investment income, and
13    other  income,  will  be  sufficient  to  meet  the  cost  of
14    maintaining  and  administering  the  System  on a 90% funded
15    basis in accordance with actuarial recommendations.
16        The  Board  shall   determine   the   amount   of   State
17    contributions  required  for each fiscal year on the basis of
18    the actuarial tables and other  assumptions  adopted  by  the
19    Board  and  the  recommendations  of  the  actuary, using the
20    formulae formula in subsection (b-3)  and  subsection  (b-4).
21    The  minimum  contribution  to  the  System to be made by the
22    State for each fiscal year shall be the  sum  of  the  amount
23    determined  under  subsection (b-3) and the amount determined
24    under subsection (b-4).
25        (a-1)  Annually, on or  before  November  15,  the  board
26    shall  certify  to  the  Governor  the amount of the required
27    State  contribution  for  the  coming   fiscal   year.    The
28    certification   shall   include   a  copy  of  the  actuarial
29    recommendations upon which it is based.
30        (b)  Through  State   fiscal   year   1995,   the   State
31    contributions  shall be paid to the System in accordance with
32    Section 18-7 of the School Code.
33        (b-1)  Beginning in State fiscal year 1996, on  the  15th
 
                            -47-               LRB9205250EGfg
 1    day   of  each  month,  or  as  soon  thereafter  as  may  be
 2    practicable, the Board shall submit vouchers for  payment  of
 3    State  contributions to the System, in a total monthly amount
 4    of one-twelfth of  the  required  annual  State  contribution
 5    certified  under  subsection  (a-1).  These vouchers shall be
 6    paid by the State Comptroller and Treasurer by warrants drawn
 7    on the funds appropriated to the System for that fiscal year.
 8        If in any month the amount remaining unexpended from  all
 9    other  appropriations to the System for the applicable fiscal
10    year  (including  the  appropriations  to  the  System  under
11    Section 8.12 of the State Finance Act and Section  1  of  the
12    State  Pension  Funds  Continuing  Appropriation Act) is less
13    than the amount lawfully vouchered under this subsection, the
14    difference shall be paid from the Common  School  Fund  under
15    the  continuing  appropriation  authority provided in Section
16    1.1 of the State Pension Funds Continuing Appropriation Act.
17        (b-2)  Allocations   from   the   Common   School    Fund
18    apportioned  to school districts not coming under this System
19    shall not be diminished or affected by the provisions of this
20    Article.
21        (b-3)  For State fiscal  years  2011  through  2045,  the
22    minimum  contribution  to  the System to be made by the State
23    for each fiscal year shall be an  amount  determined  by  the
24    System  to  be  sufficient  to  bring the total assets of the
25    System up to 90% of the total actuarial  liabilities  of  the
26    System  (other  than  the liabilities described in subsection
27    (b-4) of this Section) by the end of State fiscal year  2045.
28    In   making   these   determinations,   the   required  State
29    contribution  shall  be  calculated  each  year  as  a  level
30    percentage  of  payroll  over  the  years  remaining  to  and
31    including fiscal year 2045 and shall be determined under  the
32    projected unit credit actuarial cost method.
33        For  State  fiscal  years  1996  through  2010, the State
34    contribution to the System, as a percentage of the applicable
 
                            -48-               LRB9205250EGfg
 1    employee  payroll,  shall  be  increased  in   equal   annual
 2    increments  so  that  by State fiscal year 2011, the State is
 3    contributing at the rate required under this Section;  except
 4    that in the following specified State fiscal years, the State
 5    contribution  to  the  System  shall  not  be  less  than the
 6    following indicated percentages of  the  applicable  employee
 7    payroll,  even  if  the  indicated  percentage will produce a
 8    State contribution in excess of the amount otherwise required
 9    under this subsection and subsection (a), and notwithstanding
10    any contrary certification made under subsection (a-1) before
11    the effective date of this amendatory Act of 1998:  10.02% in
12    FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16%  in  FY
13    2002;  12.86%  in  FY  2003;  13.56% in FY 2004; 14.25% in FY
14    2005; 14.95% in FY 2006; 15.65% in  FY  2007;  16.34%  in  FY
15    2008; 17.04% in FY 2009; and 17.74% in FY 2010.
16        Beginning  in  State  fiscal year 2046, the minimum State
17    contribution for each fiscal year shall be the amount  needed
18    to  maintain  the  total  assets  of the System at 90% of the
19    total actuarial liabilities of the System.
20        (b-4)  The cost of the one-time increases granted by this
21    amendatory Act of the 92nd General Assembly under  subsection
22    (f)  of  Section  16-133.1  and  subsection  (c)  of  Section
23    16-143.1  shall  be paid by the State on a level dollar basis
24    over a period of 10 years  beginning  July  1,  2003.   These
25    contributions  are  in addition to, and shall not be included
26    in the calculation of, the State contribution required  under
27    subsection (b-3).
28        (c)  Payment  of  the required State contributions and of
29    all pensions, retirement annuities, death benefits,  refunds,
30    and  other  benefits granted under or assumed by this System,
31    and all expenses in connection with  the  administration  and
32    operation thereof, are obligations of the State.
33        If  members  are paid from special trust or federal funds
34    which are administered by the employing unit, whether  school
 
                            -49-               LRB9205250EGfg
 1    district  or  other unit, the employing unit shall pay to the
 2    System from such funds the  full  accruing  retirement  costs
 3    based  upon  that  service,  as  determined  by  the  System.
 4    Employer  contributions, based on salary paid to members from
 5    federal funds, may be forwarded by the distributing agency of
 6    the State of Illinois to the System prior to  allocation,  in
 7    an   amount   determined   in   accordance   with  guidelines
 8    established by such agency and the System.
 9        (d)  Effective July 1, 1986, any employer of a teacher as
10    defined in paragraph (8) of  Section  16-106  shall  pay  the
11    employer's  normal  cost of benefits based upon the teacher's
12    service, in addition to employee contributions, as determined
13    by  the  System.   Such  employer  contributions   shall   be
14    forwarded  monthly  in accordance with guidelines established
15    by the System.
16        However, with respect to benefits granted  under  Section
17    16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
18    of  Section  16-106, the employer's contribution shall be 12%
19    (rather than 20%) of the member's highest annual salary  rate
20    for each year of creditable service granted, and the employer
21    shall  also  pay the required employee contribution on behalf
22    of the teacher.  For the purposes of  Sections  16-133.4  and
23    16-133.5,  a  teacher  as defined in paragraph (8) of Section
24    16-106 who is serving in that  capacity  while  on  leave  of
25    absence from another employer under this Article shall not be
26    considered an employee of the employer from which the teacher
27    is on leave.
28        (e)  Beginning  July 1, 1998, every employer of a teacher
29    shall pay to the System an employer contribution computed  as
30    follows:
31             (1)  Beginning  July  1, 1998 through June 30, 1999,
32        the employer contribution shall be equal to 0.3% of  each
33        teacher's salary.
34             (2)  Beginning  July  1,  1999  and  thereafter, the
 
                            -50-               LRB9205250EGfg
 1        employer contribution shall be equal  to  0.58%  of  each
 2        teacher's salary.
 3    The  school  district  or  other employing unit may pay these
 4    employer contributions out of any source of funding available
 5    for that purpose and shall forward the contributions  to  the
 6    System  on the schedule established for the payment of member
 7    contributions.
 8        These employer contributions are  intended  to  offset  a
 9    portion  of  the  cost  to  the  System  of  the increases in
10    retirement benefits resulting from  this  amendatory  Act  of
11    1998.
12        The  additional  1%  employee contribution required under
13    Section  16-152  by  this  amendatory  Act  of  1998  is  the
14    responsibility of the teacher and not the teacher's employer,
15    unless the employer agrees, through collective bargaining  or
16    otherwise, to make the contribution on behalf of the teacher.
17        If an employer is required by a contract in effect on May
18    1,  1998 between the employer and an employee organization to
19    pay, on behalf of all its full-time employees covered by this
20    Article, all mandatory employee contributions required  under
21    this  Article, then the employer shall be excused from paying
22    the employer contribution required under this subsection  (e)
23    for  the  balance of the term of that contract.  The employer
24    and the employee organization shall jointly  certify  to  the
25    System  the existence of the contractual requirement, in such
26    form as the System may prescribe.  This exclusion shall cease
27    upon the termination, extension, or renewal of  the  contract
28    at any time after May 1, 1998.
29    (Source: P.A. 90-582, eff. 5-27-98.)

30        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
31        Sec. 17-119.  Automatic annual increase in pension.
32        (a)  Each teacher retiring on or after September 1, 1959,
33    is  entitled  to  the  annual  increase  in  pension, defined
 
                            -51-               LRB9205250EGfg
 1    herein, while he is receiving a pension from the Fund.
 2             1.  The  term  "base  pension"   means   a   service
 3        retirement or disability retirement pension in the amount
 4        fixed and payable at the date of retirement of a teacher.
 5             2.  The  annual  increase in pension shall be at the
 6        rate of 1 1/2% of base pension. This increase shall first
 7        occur in January of the year  next  following  the  first
 8        anniversary  of  retirement.  At such time the Fund shall
 9        pay the pro rata part of the increase for the period from
10        the first anniversary date  to  the  date  of  the  first
11        increase  in pension. Beginning January 1, 1972, the rate
12        of annual increase in pension shall be  2%  of  the  base
13        pension.  Beginning  January  1, 1979, the rate of annual
14        increase in pension shall be  3%  of  the  base  pension.
15        Beginning January 1, 1990, all automatic annual increases
16        payable  under  this  Section  shall  be  calculated as a
17        percentage of the total pension payable at  the  time  of
18        the  increase, including all increases previously granted
19        under this Article, notwithstanding Section 17-157.
20             3.  An increase in pension shall be granted only  if
21        the  retired  teacher  is  age 60 or over. If the teacher
22        attains age 60 after retirement, the increase in  pension
23        shall  begin  in  January  of the year following the 61st
24        birthday. At such time the Fund also shall  pay  the  pro
25        rata  part  of the increase from the 61st birthday to the
26        date of first increase in pension.
27        (b)  In addition to other increases which may be provided
28    by this Section, on January  1,  1981  any  teacher  who  was
29    receiving  a  retirement pension on or before January 1, 1971
30    shall have his retirement pension then being  paid  increased
31    $1 per month for each year of creditable service.  On January
32    1,  1982,  any  teacher  whose retirement pension began on or
33    before January 1, 1977, shall  have  his  retirement  pension
34    then  being  paid  increased  $1  per  month for each year of
 
                            -52-               LRB9205250EGfg
 1    creditable service.
 2        On January 1, 1987, any teacher whose retirement  pension
 3    began  on  or  before January 1, 1977, shall have the monthly
 4    retirement pension increased by an amount  equal  to  8¢  per
 5    year  of  creditable  service  times the number of years that
 6    have elapsed since the retirement pension began.
 7        (c)  On July 1, 2001, every pensioner who began receiving
 8    a retirement pension before January 1, 1980  shall  have  the
 9    monthly  retirement  pension  increased  by  whichever of the
10    following percentages is applicable:
11              5% if the annuity began in 1979;
12             10% if the annuity began in 1978;
13             14% if the annuity began in 1977;
14             14% if the annuity began in 1976;
15             18% if the annuity began in 1975;
16             23% if the annuity began in 1974;
17             32% if the annuity began in 1973 or before.
18        The increase under this subsection shall be calculated as
19    a percentage of the amount of the retirement pension  payable
20    on June 30, 2001, including any increases previously received
21    under  this Article, and shall be included in the calculation
22    of  increases  granted  thereafter  under   subsection   (a).
23    Section  17-157 does not apply to the increase provided under
24    this subsection.
25    (Source: P.A. 90-566, eff. 1-2-98.)

26        (40 ILCS 5/17-119.2 new)
27        Sec. 17-119.2. Reduction  of  purchasing  power;  policy;
28    report; increase.
29        (a)  The General Assembly finds and declares that:
30             (1)  The  purchasing power of a fixed annuity can be
31        eroded  over  time  by  the  effects  of  inflation   and
32        increases in the general cost of living.
33             (2)  For a person whose income consists primarily of
 
                            -53-               LRB9205250EGfg
 1        a  fixed  annuity,  the  reduction  in  purchasing  power
 2        resulting from increases in the cost of living can become
 3        catastrophic  over  time, transforming a once-comfortable
 4        retirement into a time of poverty and need.
 5             (3)  The State of Illinois is  concerned  about  the
 6        effects  that a significant reduction in purchasing power
 7        can have on the quality of life of retired employees  and
 8        their survivors.
 9             (4)  The  General  Assembly has previously addressed
10        this concern by providing for automatic annual  increases
11        in retirement and survivor's pensions under this Article.
12        Recognizing  that  these  automatic  annual increases, by
13        themselves, are not a complete answer in  times  of  high
14        inflation,  the  General  Assembly has also, from time to
15        time, provided specific one-time  increases  in  pensions
16        for certain categories of pensioners.
17        (b)  It  is  the  public  policy  of  this  State and the
18    intention of  the  General  Assembly  to  protect  pensioners
19    against  significant decreases in the purchasing power of the
20    retirement  and  survivor's  pensions  granted   under   this
21    Article.
22        (c)  The  Fund  shall  regularly  review the changes that
23    have occurred in the purchasing power of the  retirement  and
24    survivor's  pensions  being  paid  under this Article, and it
25    shall report to the General Assembly, the Governor,  and  the
26    Pension  Laws  Commission  whenever  it  determines  that the
27    original purchasing power of those pensions has been  reduced
28    by  20% or more for any category or group of pensioners.  The
29    Fund may include in the report its recommendations,  if  any,
30    for legislative action to address its findings.
31        (d)  As  used  in  this Section, the term "retirement and
32    survivor's pensions" means all service  retirement  pensions,
33    disability  retirement  pensions,  survivor's  pensions,  and
34    children's pensions.
 
                            -54-               LRB9205250EGfg
 1        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
 2        Sec. 17-122. Survivor's and children's pensions - Amount.
 3        (a)  Upon  the  death  of  a teacher who has completed at
 4    least 1 1/2 years of contributing service  with  either  this
 5    Fund  or  the  State  Universities  Retirement  System or the
 6    Teachers'  Retirement  System  of  the  State  of   Illinois,
 7    provided  his  death  occurred  while  (a)  in active service
 8    covered by  the  Fund  or  during  his  first  18  months  of
 9    continuous  employment  without  a break in service under any
10    other  participating  system  as  defined  in  the   Illinois
11    Retirement   Systems   Reciprocal   Act   except   the  State
12    Universities Retirement System and the  Teachers'  Retirement
13    System of the State of Illinois, (b) on a creditable leave of
14    absence,  (c)  on a noncreditable leave of absence of no more
15    than one year, or (d)  a  pension  was  deferred  or  pending
16    provided  the  teacher  had  at  least  10 years of validated
17    service credit, or upon the death of  a  pensioner  otherwise
18    qualified   for   such  benefit,  the  surviving  spouse  and
19    unmarried minor children of the deceased teacher under age 18
20    shall be entitled to pensions, under  the  conditions  stated
21    hereinafter.   Such  survivor's and children's pensions shall
22    be based on the average of the 4 highest consecutive years of
23    salary in the last 10 years of  service  or  on  the  average
24    salary for total service, if total service has been less than
25    4 years, according to the following percentages:
26             30%  of  average  salary  or  50%  of the retirement
27        pension earned  by  the  teacher,  whichever  is  larger,
28        subject  to the prescribed maximum monthly payment, for a
29        surviving spouse alone on attainment of age 50;
30             60% of average salary for  a  surviving  spouse  and
31        eligible minor children of the deceased teacher.
32        If  no  eligible spouse survives, or the surviving spouse
33    remarries, or the parent of  the  children  of  the  deceased
34    member  is  otherwise  ineligible for a survivor's pension, a
 
                            -55-               LRB9205250EGfg
 1    children's pension for eligible minor children under  age  18
 2    shall  be  paid  to  their parent or legal guardian for their
 3    benefit according to the following percentages:
 4             30% of average salary for one child;
 5             60% of average salary for 2 or more children.
 6        (b)  On January 1, 1981, any survivor or  child  who  was
 7    receiving  a  survivor's  or  children's pension on or before
 8    January 1, 1971, shall  have  his  survivor's  or  children's
 9    pension  then  being  paid increased by 1% for each full year
10    which has elapsed  from  the  date  the  pension  began.   On
11    January  1,  1982,  any survivor or child whose pension began
12    after January 1, 1971, but before January 1, 1981, shall have
13    his  survivor's  or  children's  pension  then   being   paid
14    increased  1%  for  each full year which has elapsed from the
15    date the pension began.  On January 1, 1987, any survivor  or
16    child whose pension began on or before January 1, 1977, shall
17    have  the  monthly survivor's or children's pension increased
18    by $1 for each full year which has elapsed since the  pension
19    began.
20        (c)  On  July  1, 2001, every survivor or child who began
21    receiving a survivor's or children's pension  before  January
22    1, 1980 shall have the monthly pension increased by whichever
23    of the following percentages is applicable:
24              5% if the original annuity began in 1979;
25             10% if the original annuity began in 1978;
26             14% if the original annuity began in 1977;
27             14% if the original annuity began in 1976;
28             18% if the original annuity began in 1975;
29             23% if the original annuity began in 1974;
30             32% if the original annuity began in 1973 or before.
31        In  the  case of the survivor of a deceased annuitant who
32    died while receiving a retirement annuity, "original annuity"
33    means the deceased annuitant's  retirement  pension;  in  all
34    other  cases,  "original  annuity"  means  the  survivor's or
 
                            -56-               LRB9205250EGfg
 1    children's pension.
 2        The increase under this subsection shall be calculated as
 3    a percentage of the amount of the  survivor's  or  children's
 4    pension  payable  on  June  30, 2001, including any increases
 5    previously received under this Article, and shall be included
 6    in the calculation  of  increases  granted  thereafter  under
 7    subsection  (d).   Section  17-157  does  not  apply  to  the
 8    increase provided under this subsection.
 9        (d)  Beginning  January  1,  1990,  every  survivor's and
10    children's pension shall be increased (1) on each  January  1
11    occurring  on or after the commencement of the pension if the
12    deceased teacher died while receiving a  retirement  pension,
13    or  (2)  in  other  cases,  on each January 1 occurring on or
14    after the  first  anniversary  of  the  commencement  of  the
15    pension,  by  an  amount equal to 3% of the current amount of
16    the pension, including all increases previously granted under
17    this Article, notwithstanding Section 17-157.  Such increases
18    shall apply without regard to whether  the  deceased  teacher
19    was  in  service  on  or  after  the  effective  date of this
20    amendatory Act of 1991, but shall not accrue for  any  period
21    prior to January 1, 1990.
22        (e)  Subject   to  the  minimum  established  below,  the
23    maximum amount of pension for a surviving spouse alone or one
24    minor child shall be $400 per month, and the maximum combined
25    pensions for a surviving spouse and children of the  deceased
26    teacher  shall  be  $600  per month, with individual pensions
27    adjusted for all beneficiaries pro rata to conform with  this
28    limitation.    If   proration   is  unnecessary  the  minimum
29    survivor's and children's pensions shall be  $40  per  month.
30    The  minimum  total survivor's and children's pension payable
31    upon the death of a contributor  or  annuitant  which  occurs
32    after   December  31,  1986,  shall  be  50%  of  the  earned
33    retirement  pension  of  such   contributor   or   annuitant,
34    calculated  without  early retirement discount in the case of
 
                            -57-               LRB9205250EGfg
 1    death in service.
 2        On death  after  retirement,  the  total  survivor's  and
 3    children's  pensions  shall not exceed the monthly retirement
 4    or  disability  pension  paid  to  the   deceased   retirant.
 5    Survivor's  and children's benefits described in this Section
 6    shall apply to all service and disability pensioners eligible
 7    for a pension as of July 1, 1981.
 8    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

 9        Section 90.  The State Mandates Act is amended by  adding
10    Section 8.25 as follows:

11        (30 ILCS 805/8.25 new)
12        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
13    and 8 of this Act, no reimbursement by the State is  required
14    for  the  implementation  of  any  mandate  created  by  this
15    amendatory Act of the 92nd General Assembly.

16        Section  99.  Effective date.  This Act takes effect upon
17    becoming law.

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