State of Illinois
92nd General Assembly
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92_HB0514

 
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 1        AN  ACT in relation to public employee pensions, amending
 2    named Acts.

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

 5        Section  5.   The  Illinois  Pension  Code  is amended by
 6    changing Sections 14-114, 14-119, 14-121,  15-136,  15-136.3,
 7    15-145, 16-133.1, 16-143.1, 17-119, and 17-122 as follows:

 8        (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
 9        Sec. 14-114.  Automatic increase in retirement annuity.
10        (a)  Any person receiving a retirement annuity under this
11    Article  who  retires  having attained age 60, or who retires
12    before age 60 having at least 35 years of creditable service,
13    shall on January 1, next following the  first  full  year  of
14    retirement,  have  the  amount  of the then fixed and payable
15    monthly  retirement  annuity  increased   3%.    Any   person
16    receiving a retirement annuity under this Article who retires
17    before  attainment  of  age 60 and with less than 35 years of
18    creditable service shall have the amount  of  the  fixed  and
19    payable  retirement  annuity increased by 3% on the January 1
20    occurring on or next following (1) attainment of age  60,  or
21    (2)  the  first  anniversary  of retirement, whichever occurs
22    later.  However, for  persons  who  receive  the  alternative
23    retirement  annuity  under Section 14-110, references in this
24    subsection (a) to attainment of age 60  shall  be  deemed  to
25    refer  to attainment of age 55.  For a person receiving early
26    retirement incentives under Section 14-108.3 whose retirement
27    annuity began after January 1, 1992 pursuant to an  extension
28    granted  under  subsection  (e)  of  that  Section, the first
29    anniversary of retirement shall be deemed to  be  January  1,
30    1993.
31        On  each  January  1  following  the  date of the initial
 
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 1    increase  under  this  subsection,  the  employee's   monthly
 2    retirement annuity shall be increased by an additional 3%.
 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  previous  increases  granted under this
 7    Article.
 8        (b)  The provisions of subsection  (a)  of  this  Section
 9    shall be applicable to an employee only if the employee makes
10    the additional contributions required after December 31, 1969
11    for  the purpose of the automatic increases for not less than
12    the equivalent of one full year. If an  employee  becomes  an
13    annuitant  before his additional contributions equal one full
14    year's contributions based on  his  salary  at  the  date  of
15    retirement, the employee may pay the necessary balance of the
16    contributions   to  the  system,  without  interest,  and  be
17    eligible  for  the  increasing  annuity  authorized  by  this
18    Section.
19        (c)  The provisions of subsection  (a)  of  this  Section
20    shall not be applicable to any annuitant who is on retirement
21    on  December  31,  1969,  and  thereafter  returns  to  State
22    service,  unless the member has established at least one year
23    of  additional  creditable  service  following  reentry  into
24    service.
25        (d)  In addition to other increases which may be provided
26    by this Section, on January 1, 1981  any  annuitant  who  was
27    receiving  a  retirement annuity on or before January 1, 1971
28    shall have his retirement annuity then being  paid  increased
29    $1 per month for each year of creditable service.  On January
30    1,  1982,  any  annuitant  who  began  receiving a retirement
31    annuity  on  or  before  January  1,  1977,  shall  have  his
32    retirement annuity then being paid increased $1 per month for
33    each year of creditable service.
34        On January 1, 1987, any annuitant who began  receiving  a
 
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 1    retirement  annuity  on or before January 1, 1977, shall have
 2    the monthly retirement annuity increased by an  amount  equal
 3    to  8¢  per  year  of  creditable service times the number of
 4    years that have elapsed since the annuity began.
 5        (d-1)  On January 1,  2002,  every  annuitant  who  began
 6    receiving  a  retirement annuity on or before January 1, 1991
 7    shall have the monthly retirement  annuity  increased  by  an
 8    amount equal to 25¢ multiplied by the number of full years of
 9    creditable  service  multiplied  by  the number of full years
10    that have elapsed since the annuity began.   Every  annuitant
11    who  begins  receiving  a retirement annuity after January 1,
12    1991 and before  January  1,  1998  shall  have  the  monthly
13    retirement  annuity  increased  on  January 1, 2002 or on the
14    January  1  occurring  on  or  next  following  the   seventh
15    anniversary  of  retirement, whichever is later, by an amount
16    equal to $1.75 multiplied by the  number  of  full  years  of
17    creditable  service  upon  which  the  retirement  annuity is
18    based.  The increase under this subsection shall be  included
19    in  the  calculation  of  increases granted simultaneously or
20    thereafter under subsection (a).
21        (e)  Every person who receives the alternative retirement
22    annuity under Section 14-110 and who is eligible  to  receive
23    the  3%  increase  under  subsection  (a) on January 1, 1986,
24    shall also receive  on  that  date  a  one-time  increase  in
25    retirement  annuity  equal  to the difference between (1) his
26    actual  retirement  annuity  on  that  date,  including   any
27    increases  received  under subsection (a), and (2) the amount
28    of retirement annuity he would have received on that date  if
29    the  amendments  to  subsection (a) made by Public Act 84-162
30    had been in effect since the date of his retirement.
31    (Source: P.A. 86-273; 87-1265.)

32        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
33        Sec. 14-119.  Amount of widow's annuity.
 
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 1        (a)  The widow's annuity shall be 50% of  the  amount  of
 2    retirement annuity payable to the member on the date of death
 3    while  on  retirement  if an annuitant, or on the date of his
 4    death while in service if an employee, regardless of his  age
 5    on  such date, or on the date of withdrawal if death occurred
 6    after termination of service under the conditions  prescribed
 7    in the preceding Section.
 8        (b)  If  an eligible widow, regardless of age, has in her
 9    care any unmarried child or children of the member under  age
10    18 (under age 22 if a full-time student), the widow's annuity
11    shall  be  increased  in  the  amount of 5% of the retirement
12    annuity for each such child, but the combined payments for  a
13    widow  and  children shall not exceed 66 2/3% of the member's
14    earned retirement annuity.
15        The amount of retirement annuity from which  the  widow's
16    annuity is derived shall be that earned by the member without
17    regard  to whether he attained age 60 prior to his withdrawal
18    under the conditions stated or prior to his death.
19        (c)  Adopted children shall be considered as children  of
20    the   member  only  if  the  proceedings  for  adoption  were
21    commenced at least 1 year prior to the member's death.
22        Marriage of a child shall render the child ineligible for
23    further consideration in the increase in the  amount  of  the
24    widow's annuity.
25        Attainment  of  age  18  (age  22 if a full-time student)
26    shall render a child ineligible for further consideration  in
27    the  increase  of the widow's annuity, but the annuity to the
28    widow shall be continued thereafter, without  regard  to  her
29    age at that time.
30        (d)  A  widow's annuity payable on account of any covered
31    employee who shall have been a covered employee for at  least
32    18  months shall be reduced by 1/2 of the amount of survivors
33    benefits to which his beneficiaries are  eligible  under  the
34    provisions  of  the  Federal Social Security Act, except that
 
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 1    (1) the amount of any  widow's  annuity  payable  under  this
 2    Article  shall not be reduced by reason of any increase under
 3    that Act which occurs  after  the  offset  required  by  this
 4    subsection  is  first  applied  to  that annuity, and (2) for
 5    benefits granted on or after  January  1,  1992,  the  offset
 6    under  this subsection (d) shall not exceed 50% of the amount
 7    of widow's annuity otherwise payable.
 8        (e)  Upon the death of a recipient of a  widow's  annuity
 9    the   excess,   if      any,   of  the  member's  accumulated
10    contributions  plus  credited  interest  over   all   annuity
11    payments  to the member and widow, exclusive of the $500 lump
12    sum payment, shall be paid to the named  beneficiary  of  the
13    widow, or if none has been named, to the estate of the widow,
14    provided no reversionary annuity is payable.
15        (f)  On  January  1,  1981,  any  recipient  of a widow's
16    annuity who was receiving a  widow's  annuity  on  or  before
17    January  1,  1971,  shall have her widow's annuity then being
18    paid increased by 1% for each full  year  which  has  elapsed
19    from the date the widow's annuity began.  On January 1, 1982,
20    any  recipient  of  a  widow's  annuity who began receiving a
21    widow's annuity after January 1, 1971, but before January  1,
22    1981,   shall  have  her  widow's  annuity  then  being  paid
23    increased by 1% for each full year which has elapsed from the
24    date the widow's annuity began.   On  January  1,  1987,  any
25    recipient  of  a  widow's  annuity  who  began  receiving the
26    widow's annuity on or before January 1, 1977, shall have  the
27    monthly  widow's  annuity  increased by $1 for each full year
28    which has elapsed since the date the annuity began.
29        (f-1)  On  January  1,  2002,  every  widow   who   began
30    receiving  a  widow's  annuity  on  or before January 1, 1991
31    shall have the monthly widow's annuity increased by an amount
32    equal to 25¢ multiplied by the number of full  years  of  the
33    deceased spouse's creditable service multiplied by the sum of
34    (i)  the  number  of  full  years that have elapsed since the
 
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 1    widow's annuity began and (ii) the number of full  years,  if
 2    any,  during  which the deceased spouse received a retirement
 3    annuity under this Article.  Every widow who begins receiving
 4    a widow's annuity after January 1, 1991 and before January 1,
 5    2002 shall have the  monthly  widow's  annuity  increased  on
 6    January  1,  2002  or  on  the January 1 occurring on or next
 7    following the seventh anniversary of the commencement of  the
 8    widow's  annuity,  whichever  is later, by an amount equal to
 9    25¢ multiplied by the number of full years  of  the  deceased
10    spouse's  creditable service multiplied by the sum of (i) the
11    number of full years that  have  elapsed  since  the  widow's
12    annuity  began  and  (ii)  the  number of full years, if any,
13    during  which  the  deceased  spouse  received  a  retirement
14    annuity  under  this  Article.   The  increase   under   this
15    subsection  shall be included in the calculation of increases
16    granted simultaneously or thereafter under subsection (g).
17        (g)  Beginning January 1,  1990,  every  widow's  annuity
18    shall  be  increased  (1)  on  each January 1 occurring on or
19    after the commencement of the annuity if the deceased  member
20    died  while  receiving  a retirement annuity, or (2) in other
21    cases, on each January 1 occurring  on  or  after  the  first
22    anniversary  of the commencement of the annuity, by an amount
23    equal to 3% of the current amount of the  annuity,  including
24    any  previous  increases  under  this Article. Such increases
25    shall apply without regard to whether the deceased member was
26    in service on or after  the  effective  date  of  Public  Act
27    86-1488, but shall not accrue for any period prior to January
28    1, 1990.
29    (Source: P.A. 90-448, eff. 8-16-97.)

30        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
31        Sec.  14-121.   Amount of survivors annuity.  A survivors
32    annuity beneficiary shall  be  entitled  upon  death  of  the
33    member  to  a  single sum payment of $1,000, payable pro rata
 
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 1    among all persons entitled thereto, together with a survivors
 2    annuity  payable  at  the  rates  and  under  the  conditions
 3    specified in this Article.
 4        (a)  If the survivors annuity beneficiary  is  a  spouse,
 5    the   survivors   annuity  shall  be  30%  of  final  average
 6    compensation subject to a maximum payment of $400 per month.
 7        (b)  If an eligible child or children under the care of a
 8    spouse also survives  the  member,  such  spouse  as  natural
 9    guardian  of the child or children shall receive, in addition
10    to the foregoing annuity, 20% of final  average  compensation
11    on  account  of  each  such  child  and  10% of final average
12    compensation divided pro rata among such children, subject to
13    a  maximum  payment  on  account  of  all  survivor   annuity
14    beneficiaries of $600 per month, or 80% of the member's final
15    average compensation, whichever is the lesser.
16        (c)  If    the    survivors    annuity   beneficiary   or
17    beneficiaries consists of an unmarried child or children, the
18    amount of survivors annuity shall be  20%  of  final  average
19    compensation   to  each  child,  and  10%  of  final  average
20    compensation  divided  pro  rata  among  all  such   children
21    entitled to such annuity, subject to a maximum payment to all
22    children  combined  of  $600 per month or 80% of the member's
23    final average compensation, whichever is the lesser.
24        (d)  If the survivors annuity beneficiary is one or  more
25    dependent  parents, the annuity shall be 20% of final average
26    compensation  to  each  parent  and  10%  of  final   average
27    compensation  divided  pro rata among the parents who qualify
28    for this annuity,  subject  to  a  maximum  payment  to  both
29    dependent parents of $400 per month.
30        (e)  The  survivors  annuity  to  the spouse, children or
31    dependent parents of a member whose death  occurs  after  the
32    date  of  last  withdrawal,  or after retirement, or while in
33    service following reentry into service after  retirement  but
34    before  completing  1  1/2  years  of  additional  creditable
 
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 1    service,  shall  not exceed the lesser of 80% of the member's
 2    earned retirement annuity at the date of death or the maximum
 3    previously established in this Section.
 4        (f)  In  applying  the  limitation  prescribed   on   the
 5    combined   payments   to   2   or   more   survivors  annuity
 6    beneficiaries, the annuity on  account  of  each  beneficiary
 7    shall  be  reduced  pro rata until such time as the number of
 8    beneficiaries makes the reduction no longer applicable.
 9        (g)  A  survivors  annuity  payable  on  account  of  any
10    covered employee who shall have been a covered  employee  for
11    at  least  18  months  at  date  of death or last withdrawal,
12    whichever is the later,  shall  be  reduced  by  1/2  of  the
13    survivors  benefits  to  which his beneficiaries are eligible
14    under the federal Social Security Act, except  that  (1)  the
15    survivors  annuity  payable  under  this Article shall not be
16    reduced by any increase under that Act which occurs after the
17    offset required by this subsection is first applied  to  that
18    annuity,  and (2) for benefits granted on or after January 1,
19    1992, the offset under this subsection (g) shall  not  exceed
20    50% of the amount of survivors annuity otherwise payable.
21        (h)  The minimum payment to a beneficiary hereunder shall
22    be  $60  per month, which shall be reduced in accordance with
23    the limitation prescribed on the  combined  payments  to  all
24    beneficiaries of a member.
25        (i)  Subject  to  the  conditions  set  forth  in Section
26    14-120, the minimum total survivors annuity  benefit  payable
27    to  the  survivors annuity beneficiaries of a deceased member
28    or annuitant whose death occurs on or after January 1,  1984,
29    shall  be 50% of the amount of retirement annuity that was or
30    would have been payable to the deceased on the date of death,
31    regardless of the age of the deceased on such date.   If  the
32    minimum total benefit provided by this subsection exceeds the
33    maximum  otherwise imposed by this Section, the minimum total
34    benefit shall nevertheless be payable.  Any increase  in  the
 
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 1    total  survivors annuity benefit resulting from the operation
 2    of this subsection  shall  be  divided  among  the  survivors
 3    annuity  beneficiaries of the deceased in proportion to their
 4    shares of  the  total  survivors  annuity  benefit  otherwise
 5    payable under this Section.
 6        (j)  Any  survivors  annuity  beneficiary  whose  annuity
 7    terminates  due  to  any  condition specified in this Article
 8    other than death shall be entitled to a refund of the excess,
 9    if any, of the accumulated contributions of the  member  plus
10    credited  interest  over  all  payments  to  the  member  and
11    beneficiary  or  beneficiaries,  exclusive  of the single sum
12    payment  of  $1,000,  provided   no   future   survivors   or
13    reversionary annuity benefits are payable.
14        (k)  Upon  the  death of the last eligible recipient of a
15    survivors  annuity  the  excess,  if  any,  of  the  member's
16    accumulated contributions plus  credited  interest  over  all
17    annuity payments to the member and survivors exclusive of the
18    single  sum  payment  of  $1000,  shall  be paid to the named
19    beneficiary of the last eligible survivor,  or  if  none  has
20    been  named,  to  the  estate  of the last eligible survivor,
21    provided no reversionary annuity is payable.
22        (l)  On January 1, 1981, any survivor who was receiving a
23    survivors annuity on or before January 1,  1971,  shall  have
24    his  survivors  annuity  then  being paid increased by 1% for
25    each full year which has elapsed from the  date  the  annuity
26    began.   On January 1, 1982, any survivor who began receiving
27    a survivor's  annuity  after  January  1,  1971,  but  before
28    January 1, 1981, shall have his survivor's annuity then being
29    paid increased by 1% for each full year that has elapsed from
30    the  date the annuity began. On January 1, 1987, any survivor
31    who began receiving a survivor's annuity on or before January
32    1, 1977, shall have the monthly survivor's annuity  increased
33    by $1 for each full year which has elapsed since the date the
34    survivor's annuity began.
 
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 1        (m)  Beginning  January 1, 1990, every survivor's annuity
 2    shall be increased (1) on each  January  1  occurring  on  or
 3    after  the commencement of the annuity if the deceased member
 4    died while receiving a retirement annuity, or  (2)  in  other
 5    cases,  on  each  January  1  occurring on or after the first
 6    anniversary of the commencement of the annuity, by an  amount
 7    equal  to  3% of the current amount of the annuity, including
 8    any previous increases under this Article.    Such  increases
 9    shall apply without regard to whether the deceased member was
10    in  service  on  or  after  the  effective date of Public Act
11    86-1488, but shall not accrue for any period prior to January
12    1, 1990.
13        (n)  On  January  1,  2002,  every  survivor  who   began
14    receiving  a  survivor's annuity on or before January 1, 1991
15    shall have the monthly survivor's  annuity  increased  by  an
16    amount equal to 25¢ multiplied by the number of full years of
17    the  deceased's  creditable  service multiplied by the sum of
18    (i) the number of full years  that  have  elapsed  since  the
19    survivor's  annuity  began and (ii) the number of full years,
20    if any, during  which  the  deceased  received  a  retirement
21    annuity  under  this  Article.    Every  survivor  who begins
22    receiving a survivor's annuity  after  January  1,  1991  and
23    before  January  1,  2002  shall  have the monthly survivor's
24    annuity increased on January 1, 2002  or  on  the  January  1
25    occurring on or next following the seventh anniversary of the
26    commencement  of  the survivor's annuity, whichever is later,
27    by an amount equal to 25¢ multiplied by the  number  of  full
28    years  of the deceased's creditable service multiplied by the
29    sum of (i) the number of full years that have  elapsed  since
30    the  survivor's  annuity  began  and  (ii) the number of full
31    years,  if  any,  during  which  the  deceased   received   a
32    retirement  annuity  under  this Article.  The increase under
33    this subsection shall  be  included  in  the  calculation  of
34    increases   granted   simultaneously   or   thereafter  under
 
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 1    subsection (m).
 2    (Source: P.A. 86-273; 86-1488; 87-794.)

 3        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
 4        Sec.  15-136.   Retirement  annuities  -   Amount.    The
 5    provisions  of  this  Section  15-136  apply  only  to  those
 6    participants who are participating in the traditional benefit
 7    package  or  the portable benefit package and do not apply to
 8    participants who are participating in the self-managed plan.
 9        (a)  The amount of a  participant's  retirement  annuity,
10    expressed  in  the  form  of  a single-life annuity, shall be
11    determined by whichever of the following rules is  applicable
12    and provides the largest annuity:
13        Rule  1:  The  retirement annuity shall be 1.67% of final
14    rate of earnings for each of the first 10 years  of  service,
15    1.90%  for  each  of  the next 10 years of service, 2.10% for
16    each year of service in excess of 20 but  not  exceeding  30,
17    and  2.30%  for each year in excess of 30; or for persons who
18    retire on or after January 1, 1998, 2.2% of the final rate of
19    earnings for each year of service.
20        Rule 2:  The retirement annuity shall be the sum  of  the
21    following,   determined   from   amounts   credited   to  the
22    participant in accordance with the actuarial tables  and  the
23    prescribed  rate  of  interest  in  effect  at  the  time the
24    retirement annuity begins:
25             (i)  the normal annuity which can be provided on  an
26        actuarially  equivalent  basis, by the accumulated normal
27        contributions as of the date the annuity begins; and
28             (ii)  an annuity from employer contributions  of  an
29        amount  equal  to  that  which  can  be  provided  on  an
30        actuarially  equivalent basis from the accumulated normal
31        contributions  made  by  the  participant  under  Section
32        15-113.6 and Section 15-113.7 plus 1.4  times  all  other
33        accumulated normal contributions made by the participant.
 
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 1        With  respect  to  a  police  officer  or firefighter who
 2    retires on or after August 14, 1998, the  accumulated  normal
 3    contributions  taken  into account under clauses (i) and (ii)
 4    of  this  Rule  2  shall  include   the   additional   normal
 5    contributions made by the police officer or firefighter under
 6    Section 15-157(a).
 7        The  amount of a retirement annuity calculated under this
 8    Rule  2  shall  be  computed  solely  on  the  basis  of  the
 9    participant's accumulated normal contributions, as  specified
10    in  this  Rule  and  defined  in  Section 15-116.  Neither an
11    employee or employer contribution for early retirement  under
12    Section 15-136.2 nor any other employer contribution shall be
13    used in the calculation of the amount of a retirement annuity
14    under this Rule 2.
15        This  amendatory  Act  of  the 91st General Assembly is a
16    clarification  of  existing  law   and   applies   to   every
17    participant and annuitant without regard to whether status as
18    an  employee  terminates  before  the  effective date of this
19    amendatory Act.
20        Rule 3:  The retirement annuity of a participant  who  is
21    employed  at  least  one-half time during the period on which
22    his or her final rate of earnings is based, shall be equal to
23    the  participant's  years  of  service  not  to  exceed   30,
24    multiplied  by  (1)  $96  if  the participant's final rate of
25    earnings is less than $3,500, (2) $108 if the final  rate  of
26    earnings is at least $3,500 but less than $4,500, (3) $120 if
27    the  final  rate of earnings is at least $4,500 but less than
28    $5,500, (4) $132 if the final rate of earnings  is  at  least
29    $5,500  but  less  than $6,500, (5) $144 if the final rate of
30    earnings is at least $6,500 but less than $7,500, (6) $156 if
31    the final rate of earnings is at least $7,500 but  less  than
32    $8,500,  (7)  $168  if the final rate of earnings is at least
33    $8,500 but less than $9,500, and (8) $180 if the  final  rate
34    of  earnings  is  $9,500 or more, except that the annuity for
 
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 1    those  persons  having  made  an   election   under   Section
 2    15-154(a-1)   shall  be  calculated  and  payable  under  the
 3    portable  retirement  benefit   program   pursuant   to   the
 4    provisions of Section 15-136.4.
 5        Rule  4:  A participant who is at least age 50 and has 25
 6    or more years of service as a police officer or  firefighter,
 7    and  a  participant who is age 55 or over and has at least 20
 8    but less than 25 years of service  as  a  police  officer  or
 9    firefighter,  shall  be  entitled  to a retirement annuity of
10    2 1/4% of the final rate of earnings for each of the first 10
11    years of service as a police officer or  firefighter,  2 1/2%
12    for  each of the next 10 years of service as a police officer
13    or firefighter, and 2 3/4% for each  year  of  service  as  a
14    police   officer   or  firefighter  in  excess  of  20.   The
15    retirement annuity for all other service  shall  be  computed
16    under Rule 1.
17        For purposes of this Rule 4, a participant's service as a
18    firefighter shall also include the following:
19             (i)  service  that  is performed while the person is
20        an employee under subsection (h) of Section 15-107; and
21             (ii)  in  the  case  of  an  individual  who  was  a
22        participating employee employed in the fire department of
23        the  University  of  Illinois's  Champaign-Urbana  campus
24        immediately  prior  to  the  elimination  of  that   fire
25        department  and  who immediately after the elimination of
26        that fire department transferred to another job with  the
27        University  of Illinois, service performed as an employee
28        of the University of Illinois in a  position  other  than
29        police  officer  or  firefighter,  from  the date of that
30        transfer until the employee's next termination of service
31        with the University of Illinois.
32        Rule 5:  The retirement  annuity  of  a  participant  who
33    elected  early  retirement  under  the  provisions of Section
34    15-136.2 and who, on or before  February  16,  1995,  brought
 
                            -14-               LRB9200752LDpr
 1    administrative  proceedings  pursuant  to  the administrative
 2    rules adopted by the System to challenge the  calculation  of
 3    his  or  her  retirement  annuity  shall  be  the  sum of the
 4    following,  determined   from   amounts   credited   to   the
 5    participant  in  accordance with the actuarial tables and the
 6    prescribed rate  of  interest  in  effect  at  the  time  the
 7    retirement annuity begins:
 8             (i)  the  normal annuity which can be provided on an
 9        actuarially equivalent basis, by the  accumulated  normal
10        contributions as of the date the annuity begins; and
11             (ii)  an  annuity  from employer contributions of an
12        amount  equal  to  that  which  can  be  provided  on  an
13        actuarially equivalent basis from the accumulated  normal
14        contributions  made  by  the  participant  under  Section
15        15-113.6  and  Section  15-113.7 plus 1.4 times all other
16        accumulated normal contributions made by the participant;
17        and
18             (iii)  an  annuity  which  can  be  provided  on  an
19        actuarially   equivalent   basis   from   the    employee
20        contribution for early retirement under Section 15-136.2,
21        and  an  annuity from employer contributions of an amount
22        equal to that which can be  provided  on  an  actuarially
23        equivalent basis from the employee contribution for early
24        retirement under Section 15-136.2.
25        In  no event shall a retirement annuity under this Rule 5
26    be lower than the amount obtained by adding (1)  the  monthly
27    amount   obtained  by  dividing  the  combined  employee  and
28    employer contributions made under  Section  15-136.2  by  the
29    System's annuity factor for the age of the participant at the
30    beginning  of  the  annuity payment period and (2) the amount
31    equal to the participant's annuity if calculated  under  Rule
32    1, reduced under Section 15-136(b) as if no contributions had
33    been made under Section 15-136.2.
34        With  respect  to  a  participant  who is qualified for a
 
                            -15-               LRB9200752LDpr
 1    retirement annuity under this Rule 5 whose retirement annuity
 2    began before the effective date of this amendatory Act of the
 3    91st General Assembly, and for whom an employee  contribution
 4    was made under Section 15-136.2, the System shall recalculate
 5    the  retirement  annuity  under this Rule 5 and shall pay any
 6    additional amounts due in  the  manner  provided  in  Section
 7    15-186.1 for benefits mistakenly set too low.
 8        The  amount of a retirement annuity calculated under this
 9    Rule 5 shall  be  computed  solely  on  the  basis  of  those
10    contributions  specifically set forth in this Rule 5.  Except
11    as provided in clause  (iii)  of  this  Rule  5,  neither  an
12    employee nor employer contribution for early retirement under
13    Section  15-136.2, nor any other employer contribution, shall
14    be used in the calculation of  the  amount  of  a  retirement
15    annuity under this Rule 5.
16        The General Assembly has adopted the changes set forth in
17    Section  25  of  this  amendatory  Act  of  the  91st General
18    Assembly in recognition that the decision  of  the  Appellate
19    Court for the Fourth District in Mattis v. State Universities
20    Retirement  System  et al. might be deemed to give some right
21    to the plaintiff in that case.  The changes made  by  Section
22    25  of this amendatory Act of the 91st General Assembly are a
23    legislative implementation of the decision of  the  Appellate
24    Court for the Fourth District in Mattis v. State Universities
25    Retirement System et al. with respect to that plaintiff.
26        The  changes made by Section 25 of this amendatory Act of
27    the 91st General Assembly apply without regard to whether the
28    person is in service as an employee on or after its effective
29    date.
30        (b)  The retirement annuity provided under Rules 1 and  3
31    above  shall  be  reduced  by  1/2  of  1% for each month the
32    participant is under  age  60  at  the  time  of  retirement.
33    However,  this  reduction  shall  not  apply in the following
34    cases:
 
                            -16-               LRB9200752LDpr
 1             (1)  For a  disabled  participant  whose  disability
 2        benefits  have  been  discontinued  because he or she has
 3        exhausted  eligibility  for  disability  benefits   under
 4        clause (6) of Section 15-152;
 5             (2)  For  a  participant who has at least the number
 6        of years of service required to retire at any  age  under
 7        subsection (a) of Section 15-135; or
 8             (3)  For  that portion of a retirement annuity which
 9        has  been  provided  on  account  of   service   of   the
10        participant  during  periods when he or she performed the
11        duties of a  police  officer  or  firefighter,  if  these
12        duties  were  performed  for at least 5 years immediately
13        preceding the date the retirement annuity is to begin.
14        (c)  The maximum retirement annuity provided under  Rules
15    1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
16    benefits  as specified in Section 415 of the Internal Revenue
17    Code of 1986, as such Section may be  amended  from  time  to
18    time  and  as  such  benefit  limits shall be adjusted by the
19    Commissioner of Internal Revenue, and (2) 80% of  final  rate
20    of earnings.
21        (d)  An  annuitant whose status as an employee terminates
22    after August 14, 1969 shall receive  automatic  increases  in
23    his or her retirement annuity as follows:
24        Effective  January  1  immediately following the date the
25    retirement annuity begins, the  annuitant  shall  receive  an
26    increase  in  his or her monthly retirement annuity of 0.125%
27    of the monthly retirement annuity provided under Rule 1, Rule
28    2, Rule 3, Rule 4, or Rule  5,  contained  in  this  Section,
29    multiplied  by  the  number of full months which elapsed from
30    the date the retirement annuity payments began to January  1,
31    1972,  plus 0.1667% of such annuity, multiplied by the number
32    of full months which elapsed from January  1,  1972,  or  the
33    date  the  retirement  annuity  payments  began, whichever is
34    later, to  January  1,  1978,  plus  0.25%  of  such  annuity
 
                            -17-               LRB9200752LDpr
 1    multiplied  by  the  number of full months which elapsed from
 2    January 1, 1978, or the date the retirement annuity  payments
 3    began,  whichever  is  later,  to  the  effective date of the
 4    increase.
 5        The annuitant shall receive an increase  in  his  or  her
 6    monthly  retirement  annuity  on  each  January  1 thereafter
 7    during the annuitant's life of  3%  of  the  monthly  annuity
 8    provided  under  Rule  1,  Rule  2, Rule 3, Rule 4, or Rule 5
 9    contained in  this  Section.   The  change  made  under  this
10    subsection  by  P.A.  81-970 is effective January 1, 1980 and
11    applies  to  each  annuitant  whose  status  as  an  employee
12    terminates before or after that date.
13        Beginning January 1, 1990, all automatic annual increases
14    payable  under  this  Section  shall  be  calculated   as   a
15    percentage  of  the  total annuity payable at the time of the
16    increase, including all increases  previously  granted  under
17    this Article.
18        The  change  made  in  this subsection by P.A. 85-1008 is
19    effective January 26, 1988, and is applicable without  regard
20    to whether status as an employee terminated before that date.
21        (e)  If,  on  January 1, 1987, or the date the retirement
22    annuity payment period begins, whichever is later, the sum of
23    the retirement annuity provided under Rule 1  or  Rule  2  of
24    this  Section  and  the  automatic  annual increases provided
25    under the preceding subsection or Section  15-136.1,  amounts
26    to  less  than the retirement annuity which would be provided
27    by Rule 3, the retirement annuity shall be  increased  as  of
28    January  1,  1987, or the date the retirement annuity payment
29    period begins, whichever is later, to the amount which  would
30    be  provided by Rule 3 of this Section. Such increased amount
31    shall be considered as the retirement annuity in  determining
32    benefits  provided under other Sections of this Article. This
33    paragraph applies without regard  to  whether  status  as  an
34    employee   terminated  before  the  effective  date  of  this
 
                            -18-               LRB9200752LDpr
 1    amendatory Act of  1987,  provided  that  the  annuitant  was
 2    employed  at  least  one-half time during the period on which
 3    the final rate of earnings was based.
 4        (f)  A participant is entitled to such additional annuity
 5    as may be provided on an actuarially equivalent basis, by any
 6    accumulated additional contributions to his  or  her  credit.
 7    However, the additional contributions made by the participant
 8    toward the automatic increases in annuity provided under this
 9    Section  shall  not  be taken into account in determining the
10    amount of such additional annuity.
11        (g)  If, (1) by law, a function of a  governmental  unit,
12    as  defined by Section 20-107 of this Code, is transferred in
13    whole or in part  to  an  employer,  and  (2)  a  participant
14    transfers  employment  from  such  governmental  unit to such
15    employer within 6 months after the transfer of the  function,
16    and (3) the sum of (A) the annuity payable to the participant
17    under  Rule  1,  2, or 3 of this Section (B) all proportional
18    annuities payable to the participant by all other  retirement
19    systems  covered  by  Article 20, and (C) the initial primary
20    insurance amount to which the participant is  entitled  under
21    the  Social Security Act, is less than the retirement annuity
22    which would have been payable if  all  of  the  participant's
23    pension  credits  validated  under  Section  20-109  had been
24    validated under this system, a supplemental annuity equal  to
25    the  difference  in  such  amounts  shall  be  payable to the
26    participant.
27        (h)  On January 1, 1981, an annuitant who was receiving a
28    retirement annuity on or before January 1,  1971  shall  have
29    his  or  her  retirement annuity then being paid increased $1
30    per month for each year of creditable service. On January  1,
31    1982,  an  annuitant  whose  retirement  annuity  began on or
32    before January 1, 1977, shall  have  his  or  her  retirement
33    annuity  then being paid increased $1 per month for each year
34    of creditable service.
 
                            -19-               LRB9200752LDpr
 1        (i)  On January 1, 1987, any annuitant  whose  retirement
 2    annuity  began  on  or before January 1, 1977, shall have the
 3    monthly retirement annuity increased by an amount equal to 8¢
 4    per year of creditable service times the number of years that
 5    have elapsed since the annuity began.
 6        (j)  On  January  1,  2002,  every  annuitant  who  began
 7    receiving a retirement annuity on or before January  1,  1991
 8    shall  have  the  monthly  retirement annuity increased by an
 9    amount equal to 25¢ multiplied by the number of full years of
10    creditable service multiplied by the  number  of  full  years
11    that  have  elapsed since the annuity began.  Every annuitant
12    who begins receiving a retirement annuity  after  January  1,
13    1991  and  before  January  1,  1998  shall  have the monthly
14    retirement annuity increased on January 1,  2002  or  on  the
15    January   1  occurring  on  or  next  following  the  seventh
16    anniversary of retirement, whichever is later, by  an  amount
17    equal  to  $1.75  multiplied  by  the number of full years of
18    creditable service  upon  which  the  retirement  annuity  is
19    based.   The increase under this subsection shall be included
20    in the calculation of  increases  granted  simultaneously  or
21    thereafter under subsection (d).
22    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
23    eff.  8-16-97;  90-576,  eff.  3-31-98; 90-655, eff. 7-30-98;
24    90-766, eff. 8-14-98;  91-887  (Sections  20  and  25),  eff.
25    7-6-00; revised 8-31-00.)

26        (40 ILCS 5/15-136.3)
27        Sec. 15-136.3. Minimum retirement annuity.
28        (a)  Beginning   January  1,  1997,  any  person  who  is
29    receiving a monthly retirement  annuity  under  this  Article
30    which,  after  inclusion  of  (1)  all one-time and automatic
31    annual increases to which the person  is  entitled,  (2)  any
32    supplemental  annuity payable under Section 15-136.1, and (3)
33    any amount deducted under Section 15-138 or 15-140 to provide
 
                            -20-               LRB9200752LDpr
 1    a reversionary annuity, is  less  than  the  minimum  monthly
 2    retirement benefit amount specified in subsection (b) of this
 3    Section,  shall be entitled to a monthly supplemental payment
 4    equal to the difference.
 5        (b)  For purposes of the calculation in  subsection  (a),
 6    the  minimum  monthly retirement benefit amount is the sum of
 7    $25 for each year of service credit, up to a  maximum  of  30
 8    years of service, plus the amount of the increase received by
 9    the annuitant under subsection (j) of Section 15-136, if any.
10        (c)  This  Section  applies  to  all  persons receiving a
11    retirement annuity under  this  Article,  without  regard  to
12    whether  or  not employment terminated prior to the effective
13    date of this Section.
14    (Source: P.A. 89-616, eff. 8-9-96.)

15        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
16        Sec. 15-145.  Survivors  insurance  benefits;  conditions
17    and amounts.
18        (a)  The survivors insurance benefits provided under this
19    Section  shall  be  payable  to  the  eligible survivors of a
20    participant covered under  the  traditional  benefit  package
21    upon  the death of (1) a participating employee with at least
22    1 1/2 years of service,  (2)  a  participant  who  terminated
23    employment  with  at  least  10  years of service, and (3) an
24    annuitant in receipt of a retirement  annuity  or  disability
25    retirement annuity under this Article.
26        Service  under  the State Employees' Retirement System of
27    Illinois, the Teachers' Retirement System  of  the  State  of
28    Illinois   and   the  Public  School  Teachers'  Pension  and
29    Retirement Fund of Chicago shall be considered in determining
30    eligibility for survivors benefits under this Section.
31        If by law, a function of a governmental unit, as  defined
32    by  Section  20-107, is transferred in whole or in part to an
33    employer, and an  employee  transfers  employment  from  this
 
                            -21-               LRB9200752LDpr
 1    governmental  unit to such employer within 6 months after the
 2    transfer  of  this  function,  the  service  credits  in  the
 3    governmental  unit's  retirement  system  which   have   been
 4    validated   under  Section  20-109  shall  be  considered  in
 5    determining eligibility for  survivors  benefits  under  this
 6    Section.
 7        (b)  A  surviving spouse of a deceased participant, or of
 8    a deceased annuitant who did not take a refund or  additional
 9    annuity   consisting   of   accumulated  survivors  insurance
10    contributions, shall receive a survivors annuity  of  30%  of
11    the  final rate of earnings.  Payments shall begin on the day
12    following the participant's or annuitant's death or the  date
13    the  surviving spouse attains age 50, whichever is later, and
14    continue until  the  death  of  the  surviving  spouse.   The
15    annuity  shall  be  payable  to the surviving spouse prior to
16    attainment of age 50 if the surviving spouse has  in  his  or
17    her  care  a  deceased participant's or annuitant's dependent
18    unmarried child under age 18 (under age  22  if  a  full-time
19    student) who is eligible for a survivors annuity.  Remarriage
20    of  a  surviving  spouse  prior  to attainment of age 55 that
21    occurs before the effective date of this  amendatory  Act  of
22    the 91st General Assembly shall disqualify him or her for the
23    receipt of a survivors annuity.
24        (c)  Each  dependent  unmarried child under age 18 (under
25    age 22 if a full-time student) of a deceased participant,  or
26    of  a  deceased  annuitant  who  did  not  take  a  refund or
27    additional  annuity  consisting  of   accumulated   survivors
28    insurance  contributions,  shall  receive a survivors annuity
29    equal to the sum of (1) 20% of the final  rate  of  earnings,
30    and  (2)  10%  of  the  final rate of earnings divided by the
31    number of children entitled to this benefit.  Payments  shall
32    begin  on  the day following the participant's or annuitant's
33    death and continue until the child marries, dies, or  attains
34    age  18  (age 22 if a full-time student).  If the child is in
 
                            -22-               LRB9200752LDpr
 1    the care of a surviving spouse who is eligible for  survivors
 2    insurance  benefits, the child's benefit shall be paid to the
 3    surviving spouse.
 4        Each  unmarried  child  over  age  18   of   a   deceased
 5    participant  or  of a deceased annuitant who had a survivor's
 6    insurance beneficiary at the time of his or  her  retirement,
 7    and  who  was  dependent upon the participant or annuitant by
 8    reason of a physical or mental disability which  began  prior
 9    to  the date the child attained age 18 (age 22 if a full-time
10    student), shall receive a survivor's annuity equal to the sum
11    of (1) 20% of the final rate of earnings, and (2) 10% of  the
12    final  rate  of  earnings  divided  by the number of children
13    entitled to survivors benefits.  Payments shall begin on  the
14    day  following  the  participant's  or  annuitant's death and
15    continue until the child  marries,  dies,  or  is  no  longer
16    disabled.   If the child is in the care of a surviving spouse
17    who is eligible for survivors insurance benefits, the child's
18    benefit may  be  paid  to  the  surviving  spouse.   For  the
19    purposes  of  this  Section,  disability  means  inability to
20    engage in any substantial gainful activity by reason  of  any
21    medically determinable physical or mental impairment that can
22    be  expected  to result in death or that has lasted or can be
23    expected to last for a continuous  period  of  at  least  one
24    year.
25        (d)  Each  dependent parent of a deceased participant, or
26    of a  deceased  annuitant  who  did  not  take  a  refund  or
27    additional   annuity   consisting  of  accumulated  survivors
28    insurance contributions, shall receive  a  survivors  annuity
29    equal  to  the  sum of (1) 20% of final rate of earnings, and
30    (2) 10% of final rate of earnings divided by  the  number  of
31    parents  who  qualify  for the benefit.  Payments shall begin
32    when the parent reaches age  55  or  the  day  following  the
33    participant's  or  annuitant's death, whichever is later, and
34    continue until the parent dies.  Remarriage of a parent prior
 
                            -23-               LRB9200752LDpr
 1    to attainment of age 55 shall disqualify the parent  for  the
 2    receipt of a survivors annuity.
 3        (e)  In addition to the survivors annuity provided above,
 4    each survivors insurance beneficiary shall, upon death of the
 5    participant  or  annuitant,  receive  a  lump  sum payment of
 6    $1,000 divided by the number of such beneficiaries.
 7        (f)  The changes made  in  this  Section  by  Public  Act
 8    81-712   pertaining   to  survivors  annuities  in  cases  of
 9    remarriage prior to age 55  shall  apply  to  each  survivors
10    insurance  beneficiary  who  remarries  after  June 30, 1979,
11    regardless of the date  that  the  participant  or  annuitant
12    terminated his employment or died.
13        The change made to this Section by this amendatory Act of
14    the  91st General Assembly, pertaining to remarriage prior to
15    age 55,  applies  without  regard  to  whether  the  deceased
16    participant  or  annuitant  was  in  service  on or after the
17    effective date of this amendatory Act  of  the  91st  General
18    Assembly.
19        (g)  On  January  1, 1981, any person who was receiving a
20    survivors annuity on or before January 1, 1971 shall have the
21    survivors annuity then being paid increased by  1%  for  each
22    full  year which has elapsed from the date the annuity began.
23    On January 1, 1982, any survivor whose  annuity  began  after
24    January  1,  1971, but before January 1, 1981, shall have the
25    survivor's annuity then being paid increased by 1%  for  each
26    year  which  has elapsed from the date the survivor's annuity
27    began. On January 1, 1987, any survivor who began receiving a
28    survivor's annuity on or before January 1, 1977,  shall  have
29    the  monthly survivor's annuity increased by $1 for each full
30    year which has elapsed since the date the survivor's  annuity
31    began.
32        (g-1)  On  January  1,  2002,  every  survivor  who began
33    receiving a survivor's annuity on or before January  1,  1991
34    shall  have  the  monthly  survivor's annuity increased by an
 
                            -24-               LRB9200752LDpr
 1    amount equal to 25¢ multiplied by the number of full years of
 2    the deceased's creditable service multiplied by  the  sum  of
 3    (i)  the  number  of  full  years that have elapsed since the
 4    survivor's annuity began and (ii) the number of  full  years,
 5    if  any,  during  which  the  deceased  received a retirement
 6    annuity under  this  Article.    Every  survivor  who  begins
 7    receiving  a  survivor's  annuity  after  January 1, 1991 and
 8    before January 1, 2002  shall  have  the  monthly  survivor's
 9    annuity  increased  on  January  1,  2002 or on the January 1
10    occurring on or next following the seventh anniversary of the
11    commencement of the survivor's annuity, whichever  is  later,
12    by  an  amount  equal to 25¢ multiplied by the number of full
13    years of the deceased's creditable service multiplied by  the
14    sum  of  (i) the number of full years that have elapsed since
15    the survivor's annuity began and  (ii)  the  number  of  full
16    years,   if   any,  during  which  the  deceased  received  a
17    retirement annuity under this Article.   The  increase  under
18    this  subsection  shall  be  included  in  the calculation of
19    increases  granted   simultaneously   or   thereafter   under
20    subsection (j).
21        (h)  If  the  sum  of  the  lump  sum  and  total monthly
22    survivor benefits payable under this Section upon  the  death
23    of  a  participant  amounts to less than the sum of the death
24    benefits payable under items (2) and (3) of  Section  15-141,
25    the difference shall be paid in a lump sum to the beneficiary
26    of  the  participant  who  is  living  on  the date that this
27    additional amount becomes payable.
28        (i)  If the  sum  of  the  lump  sum  and  total  monthly
29    survivor  benefits  payable under this Section upon the death
30    of an annuitant receiving a retirement annuity or  disability
31    retirement  annuity  amounts  to  less than the death benefit
32    payable under Section 15-142, the difference shall be paid to
33    the beneficiary of the annuitant who is living  on  the  date
34    that this additional amount becomes payable.
 
                            -25-               LRB9200752LDpr
 1        (j)  Effective  on  the  later of (1) January 1, 1990, or
 2    (2) the January 1 on or next after  the  date  on  which  the
 3    survivor  annuity  begins,  if the deceased member died while
 4    receiving a retirement annuity, or in  all  other  cases  the
 5    January  1  nearest  the  first  anniversary  of the date the
 6    survivor annuity payments begin,  every  survivors  insurance
 7    beneficiary  shall  receive an increase in his or her monthly
 8    survivors annuity of 3%.  On each January 1 after the initial
 9    increase, the monthly survivors annuity shall be increased by
10    3%  of  the  total  survivors  annuity  provided  under  this
11    Article,  including  previous  increases  provided  by   this
12    subsection.   Such  increases  shall  apply  to the survivors
13    insurance beneficiaries of each  participant  and  annuitant,
14    whether  or  not  the employment status of the participant or
15    annuitant  terminates  before  the  effective  date  of  this
16    amendatory Act of 1990.  This subsection (j) also applies  to
17    persons  receiving  a  survivor  annuity  under  the portable
18    benefit package.
19        (k)  If the Internal Revenue Code of  1986,  as  amended,
20    requires  that  the  survivors  benefits be payable at an age
21    earlier than that specified  in  this  Section  the  benefits
22    shall   begin  at  the  earlier  age,  in  which  event,  the
23    survivor's beneficiary shall be entitled only to that  amount
24    which  is  equal  to the actuarial equivalent of the benefits
25    provided by this Section.
26        (l)  The changes made to this Section and Section  15-131
27    by  this  amendatory  Act  of  1997, relating to benefits for
28    certain unmarried children who are full-time  students  under
29    age  22,  apply without regard to whether the deceased member
30    was in service  on  or  after  the  effective  date  of  this
31    amendatory  Act  of 1997.  These changes do not authorize the
32    repayment of a refund or a re-election of benefits,  and  any
33    benefit  or increase in benefits resulting from these changes
34    is not  payable  retroactively  for  any  period  before  the
 
                            -26-               LRB9200752LDpr
 1    effective date of this amendatory Act of 1997.
 2    (Source:  P.A.  90-448,  eff.  8-16-97; 90-766, eff. 8-14-98;
 3    91-887, eff. 7-6-00.)

 4        (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
 5        Sec. 16-133.1.  Automatic annual increase in annuity.
 6        (a)  Each member with creditable service and retiring  on
 7    or  after August 26, 1969 is entitled to the automatic annual
 8    increases  in  annuity  provided  under  this  Section  while
 9    receiving  a  retirement  annuity  or  disability  retirement
10    annuity from the system.
11        An annuitant  shall  first  be  entitled  to  an  initial
12    increase  under  this Section on the January 1 next following
13    the first anniversary of retirement, or January 1 of the year
14    next following attainment of age 61, whichever is later.   At
15    such   time,   the  system  shall  pay  an  initial  increase
16    determined  as  follows:   1.5%  of  the  originally  granted
17    retirement   annuity   or   disability   retirement   annuity
18    multiplied by the number of years elapsed from the  later  of
19    (1)  attainment  of  age  55,  or (2) the date of retirement,
20    until January 1, 1972, plus  2%  of  the  originally  granted
21    annuity  multiplied  by  the  number of years elapsed between
22    January  1,  1972  and  January  1,  1978,  plus  3%  of  the
23    originally granted annuity multiplied by the number of  years
24    elapsed between January 1, 1978 and the effective date of the
25    initial  increase.   However,  the  initial  annual  increase
26    calculated   under  this  Section  for  the  recipient  of  a
27    disability retirement annuity granted under Section  16-149.2
28    shall  be  reduced  by  an  amount  equal to the total of all
29    increases in that annuity  received  under  Section  16-149.5
30    (but not exceeding 100% of the amount of the initial increase
31    otherwise provided under this Section).
32        Following   the   initial   increase,   automatic  annual
33    increases in annuity shall  be  payable  on  each  January  1
 
                            -27-               LRB9200752LDpr
 1    thereafter  during  the lifetime of the annuitant, determined
 2    as a percentage of the originally granted retirement  annuity
 3    or  disability retirement annuity for increases granted prior
 4    to January 1, 1990, and calculated as  a  percentage  of  the
 5    total  amount  of annuity, including previous increases under
 6    this Section, for increases granted on or  after  January  1,
 7    1990, as follows:  1.5% for periods prior to January 1, 1972,
 8    2%  for  periods after December 31, 1971 and prior to January
 9    1, 1978, and 3% for periods after December 31, 1977.
10        (b)  The automatic annual increases in  annuity  provided
11    under  this  Section  shall not be applicable unless a member
12    has made contributions toward such  increases  for  a  period
13    equivalent  to  one  full  year  of creditable service.  If a
14    member contributes for service  performed  after  August  26,
15    1969   but  the  member  becomes  an  annuitant  before  such
16    contributions amount to one full year's  contributions  based
17    on  the  salary  at the date of retirement, he or she may pay
18    the necessary balance of the contributions to the system  and
19    be  eligible  for  the  automatic annual increases in annuity
20    provided under this Section.
21        (c)  Each member shall make contributions toward the cost
22    of the automatic annual  increases  in  annuity  as  provided
23    under Section 16-152.
24        (d)  An  annuitant  receiving  a  retirement  annuity  or
25    disability   retirement   annuity   on   July  1,  1969,  who
26    subsequently re-enters service as a teacher is  eligible  for
27    the automatic annual increases in annuity provided under this
28    Section  if he or she renders at least one year of creditable
29    service following the latest re-entry.
30        (e)  In addition to the  automatic  annual  increases  in
31    annuity  provided  under this Section, an annuitant who meets
32    the service requirements of this Section and whose retirement
33    annuity or disability retirement annuity began on  or  before
34    January  1,  1971  shall  receive,  on  January  1,  1981, an
 
                            -28-               LRB9200752LDpr
 1    increase in the annuity then being paid  of  one  dollar  per
 2    month  for  each  year  of creditable service.  On January 1,
 3    1982, an annuitant whose  retirement  annuity  or  disability
 4    retirement  annuity  began on or before January 1, 1977 shall
 5    receive an increase in the annuity then  being  paid  of  one
 6    dollar per month for each year of creditable service.
 7        On  January  1,  1987,  any  annuitant  whose  retirement
 8    annuity  began on or before January 1, 1977, shall receive an
 9    increase in the monthly retirement annuity equal  to  8¢  per
10    year  of  creditable  service  times the number of years that
11    have elapsed since the annuity began.
12        (f)  On  January  1,  2002,  every  annuitant  who  began
13    receiving a retirement annuity on or before January  1,  1991
14    shall  have  the  monthly  retirement annuity increased by an
15    amount equal to 25¢ multiplied by the number of full years of
16    creditable service multiplied by the  number  of  full  years
17    that  have  elapsed since the annuity began.  Every annuitant
18    who begins receiving a retirement annuity  after  January  1,
19    1991   and  before  July  1,  1998  shall  have  the  monthly
20    retirement annuity increased on January 1,  2002  or  on  the
21    January   1  occurring  on  or  next  following  the  seventh
22    anniversary of retirement, whichever is later, by  an  amount
23    equal  to  $1.75  multiplied  by  the number of full years of
24    creditable service  upon  which  the  retirement  annuity  is
25    based.   The increase under this subsection shall be included
26    in the calculation of  increases  granted  simultaneously  or
27    thereafter under subsection (a).
28    (Source: P.A. 86-273; 86-1488.)

29        (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
30        Sec. 16-143.1.  Increase in survivor benefits.
31        (a)  Beginning  January  1, 1990, each survivor's benefit
32    and each reversionary annuity payable  under  Section  16-136
33    shall  be  increased  by  3%  of the currently payable amount
 
                            -29-               LRB9200752LDpr
 1    thereof (1) on each January  1  occurring  on  or  after  the
 2    commencement  of  the  annuity  if  the deceased teacher died
 3    while  receiving  a  retirement  or   disability   retirement
 4    annuity,  or  (2) in other cases, on each January 1 occurring
 5    on or after the first anniversary  of  the  granting  of  the
 6    benefit,  without  regard to whether the deceased teacher was
 7    in service on or after the effective date of this  amendatory
 8    Act  of  1991,  but  such  increases shall not accrue for any
 9    period prior to January 1, 1990.
10        (b)  On  January  1,  1981,  any  beneficiary   who   was
11    receiving  a  survivor's monthly benefit on or before January
12    1, 1971, shall have the benefit then being paid increased  by
13    1%  for  each  full year elapsed from the date the survivor's
14    benefit began.  On January 1, 1982, any beneficiary who began
15    receiving a survivor's monthly benefit after January 1, 1971,
16    but before January 1, 1981 shall have the benefit then  being
17    paid  increased by 1% for each year elapsed from the date the
18    survivor's benefit began.
19        On  January  1,  1987,  any  beneficiary  whose   monthly
20    survivor's  benefit began on or before January 1, 1977, shall
21    have the monthly survivor's benefit increased by $1 for  each
22    full  year  which  has  elapsed since the date the survivor's
23    benefit began.
24        (c)  On  January  1,  2002,  every  survivor  who   began
25    receiving  a  survivor's benefit on or before January 1, 1991
26    shall have the monthly survivor's  benefit  increased  by  an
27    amount equal to 25¢ multiplied by the number of full years of
28    the  deceased's  creditable  service multiplied by the sum of
29    (i) the number of full years  that  have  elapsed  since  the
30    survivor's  benefit  began and (ii) the number of full years,
31    if any, during  which  the  deceased  received  a  retirement
32    annuity  under  this  Article.   Every  survivor  who  begins
33    receiving  a  survivor's  benefit  after  January 1, 1991 and
34    before January 1, 2002  shall  have  the  monthly  survivor's
 
                            -30-               LRB9200752LDpr
 1    benefit  increased  on  January  1,  2002 or on the January 1
 2    occurring on or next following the seventh anniversary of the
 3    commencement of the survivor's benefit, whichever  is  later,
 4    by  an  amount  equal to 25¢ multiplied by the number of full
 5    years of the deceased's creditable service multiplied by  the
 6    sum  of  (i) the number of full years that have elapsed since
 7    the survivor's benefit began and  (ii)  the  number  of  full
 8    years,   if   any,  during  which  the  deceased  received  a
 9    retirement annuity under this Article.   The  increase  under
10    this  subsection  shall  be  included  in  the calculation of
11    increases  granted   simultaneously   or   thereafter   under
12    subsection (a).
13    (Source: P.A. 86-273; 86-1488.)

14        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
15        Sec. 17-119.  Automatic annual increase in pension.
16        (a)  Each teacher retiring on or after September 1, 1959,
17    is  entitled  to  the  annual  increase  in  pension, defined
18    herein, while he is receiving a pension from the Fund.
19             1.  The  term  "base  pension"   means   a   service
20        retirement or disability retirement pension in the amount
21        fixed and payable at the date of retirement of a teacher.
22             2.  The  annual  increase in pension shall be at the
23        rate of 1 1/2% of base pension. This increase shall first
24        occur in January of the year  next  following  the  first
25        anniversary  of  retirement.  At such time the Fund shall
26        pay the pro rata part of the increase for the period from
27        the first anniversary date  to  the  date  of  the  first
28        increase  in pension. Beginning January 1, 1972, the rate
29        of annual increase in pension shall be  2%  of  the  base
30        pension.  Beginning  January  1, 1979, the rate of annual
31        increase in pension shall be  3%  of  the  base  pension.
32        Beginning January 1, 1990, all automatic annual increases
33        payable  under  this  Section  shall  be  calculated as a
 
                            -31-               LRB9200752LDpr
 1        percentage of the total pension payable at  the  time  of
 2        the  increase, including all increases previously granted
 3        under this Article, notwithstanding Section 17-157.
 4             3.  An increase in pension shall be granted only  if
 5        the  retired  teacher  is  age 60 or over. If the teacher
 6        attains age 60 after retirement, the increase in  pension
 7        shall  begin  in  January  of the year following the 61st
 8        birthday. At such time the Fund also shall  pay  the  pro
 9        rata  part  of the increase from the 61st birthday to the
10        date of first increase in pension.
11        (b)  In addition to other increases which may be provided
12    by this Section, on January  1,  1981  any  teacher  who  was
13    receiving  a  retirement pension on or before January 1, 1971
14    shall have his retirement pension then being  paid  increased
15    $1 per month for each year of creditable service.  On January
16    1,  1982,  any  teacher  whose retirement pension began on or
17    before January 1, 1977, shall  have  his  retirement  pension
18    then  being  paid  increased  $1  per  month for each year of
19    creditable service.
20        On January 1, 1987, any teacher whose retirement  pension
21    began  on  or  before January 1, 1977, shall have the monthly
22    retirement pension increased by an amount  equal  to  8¢  per
23    year  of  creditable  service  times the number of years that
24    have elapsed since the retirement pension began.
25        (c)  On  January  1,  2002,  every  pensioner  who  began
26    receiving a retirement pension on or before January  1,  1991
27    shall  have  the  monthly  retirement pension increased by an
28    amount equal to 25¢ multiplied by the number of full years of
29    creditable service multiplied by the  number  of  full  years
30    that  have  elapsed since the pension began.  Every pensioner
31    who begins receiving a retirement pension  after  January  1,
32    1991   and  before  July  1,  1998  shall  have  the  monthly
33    retirement pension increased on January 1,  2002  or  on  the
34    January   1  occurring  on  or  next  following  the  seventh
 
                            -32-               LRB9200752LDpr
 1    anniversary of retirement, whichever is later, by  an  amount
 2    equal  to  $1.75  multiplied  by  the number of full years of
 3    creditable service  upon  which  the  retirement  pension  is
 4    based.   The increase under this subsection shall be included
 5    in the calculation of  increases  granted  simultaneously  or
 6    thereafter  under  subsection  (a).   Section 17-157 does not
 7    apply to the increase provided under this subsection.
 8    (Source: P.A. 90-566, eff. 1-2-98.)

 9        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
10        Sec. 17-122. Survivor's and children's pensions - Amount.
11        (a)  Upon the death of a teacher  who  has  completed  at
12    least  1 1/2  years  of contributing service with either this
13    Fund or the  State  Universities  Retirement  System  or  the
14    Teachers'   Retirement  System  of  the  State  of  Illinois,
15    provided his death  occurred  while  (a)  in  active  service
16    covered  by  the  Fund  or  during  his  first  18  months of
17    continuous employment without a break in  service  under  any
18    other   participating  system  as  defined  in  the  Illinois
19    Retirement  Systems   Reciprocal   Act   except   the   State
20    Universities  Retirement  System and the Teachers' Retirement
21    System of the State of Illinois, (b) on a creditable leave of
22    absence, (c) on a noncreditable leave of absence of  no  more
23    than  one  year,  or  (d)  a  pension was deferred or pending
24    provided the teacher had  at  least  10  years  of  validated
25    service  credit,  or  upon the death of a pensioner otherwise
26    qualified  for  such  benefit,  the  surviving   spouse   and
27    unmarried minor children of the deceased teacher under age 18
28    shall  be  entitled  to pensions, under the conditions stated
29    hereinafter.  Such survivor's and children's  pensions  shall
30    be based on the average of the 4 highest consecutive years of
31    salary  in  the  last  10  years of service or on the average
32    salary for total service, if total service has been less than
33    4 years, according to the following percentages:
 
                            -33-               LRB9200752LDpr
 1             30% of average  salary  or  50%  of  the  retirement
 2        pension  earned  by  the  teacher,  whichever  is larger,
 3        subject to the prescribed maximum monthly payment, for  a
 4        surviving spouse alone on attainment of age 50;
 5             60%  of  average  salary  for a surviving spouse and
 6        eligible minor children of the deceased teacher.
 7        If no eligible spouse survives, or the  surviving  spouse
 8    remarries,  or  the  parent  of  the children of the deceased
 9    member is otherwise ineligible for a  survivor's  pension,  a
10    children's  pension  for eligible minor children under age 18
11    shall be paid to their parent or  legal  guardian  for  their
12    benefit according to the following percentages:
13             30% of average salary for one child;
14             60% of average salary for 2 or more children.
15        (b)  On  January  1,  1981, any survivor or child who was
16    receiving a survivor's or children's  pension  on  or  before
17    January  1,  1971,  shall  have  his survivor's or children's
18    pension then being paid increased by 1% for  each  full  year
19    which  has  elapsed  from  the  date  the  pension began.  On
20    January 1, 1982, any survivor or child  whose  pension  began
21    after January 1, 1971, but before January 1, 1981, shall have
22    his   survivor's   or  children's  pension  then  being  paid
23    increased 1% for each full year which has  elapsed  from  the
24    date  the pension began.  On January 1, 1987, any survivor or
25    child whose pension began on or before January 1, 1977, shall
26    have the monthly survivor's or children's  pension  increased
27    by  $1 for each full year which has elapsed since the pension
28    began.
29        (c)  On January 1, 2002,  every  survivor  or  child  who
30    began  receiving  a  survivor's  or  children's pension on or
31    before  January  1,  1991  shall  have  the  monthly  pension
32    increased by an amount equal to 25¢ multiplied by the  number
33    of full years of the deceased's creditable service multiplied
34    by  the sum of (i) the number of full years that have elapsed
 
                            -34-               LRB9200752LDpr
 1    since the survivor's or children's pension began and (ii) the
 2    number of full years,  if  any,  during  which  the  deceased
 3    received  a  retirement  pension  under  this Article.  Every
 4    survivor or  child  who  begins  receiving  a  survivor's  or
 5    children's  pension  after January 1, 1991 and before January
 6    1, 2002 shall have the monthly pension increased  on  January
 7    1,  2002  or  on the January 1 occurring on or next following
 8    the seventh anniversary of the commencement of  the  pension,
 9    whichever  is  later, by an amount equal to 25¢ multiplied by
10    the number of full years of the deceased's creditable service
11    multiplied by the sum of (i) the number of  full  years  that
12    have  elapsed since the survivor's annuity began and (ii) the
13    number of full years,  if  any,  during  which  the  deceased
14    received  a  retirement  pension  under  this  Article.   The
15    increase  under  this  subsection  shall  be  included in the
16    calculation of increases granted simultaneously or thereafter
17    under subsection (d).  Section 17-157 does not apply  to  the
18    increase provided under this subsection.
19        (d)  Beginning  January  1,  1990,  every  survivor's and
20    children's pension shall be increased (1) on each  January  1
21    occurring  on or after the commencement of the pension if the
22    deceased teacher died while receiving a  retirement  pension,
23    or  (2)  in  other  cases,  on each January 1 occurring on or
24    after the  first  anniversary  of  the  commencement  of  the
25    pension,  by  an  amount equal to 3% of the current amount of
26    the pension, including all increases previously granted under
27    this Article, notwithstanding Section 17-157.  Such increases
28    shall apply without regard to whether  the  deceased  teacher
29    was  in  service  on  or  after  the  effective  date of this
30    amendatory Act of 1991, but shall not accrue for  any  period
31    prior to January 1, 1990.
32        (e)  Subject   to  the  minimum  established  below,  the
33    maximum amount of pension for a surviving spouse alone or one
34    minor child shall be $400 per month, and the maximum combined
 
                            -35-               LRB9200752LDpr
 1    pensions for a surviving spouse and children of the  deceased
 2    teacher  shall  be  $600  per month, with individual pensions
 3    adjusted for all beneficiaries pro rata to conform with  this
 4    limitation.    If   proration   is  unnecessary  the  minimum
 5    survivor's and children's pensions shall be  $40  per  month.
 6    The  minimum  total survivor's and children's pension payable
 7    upon the death of a contributor  or  annuitant  which  occurs
 8    after   December  31,  1986,  shall  be  50%  of  the  earned
 9    retirement  pension  of  such   contributor   or   annuitant,
10    calculated  without  early retirement discount in the case of
11    death in service.
12        On death  after  retirement,  the  total  survivor's  and
13    children's  pensions  shall not exceed the monthly retirement
14    or  disability  pension  paid  to  the   deceased   retirant.
15    Survivor's  and children's benefits described in this Section
16    shall apply to all service and disability pensioners eligible
17    for a pension as of July 1, 1981.
18    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

19        Section 90.  The State Mandates Act is amended by  adding
20    Section 8.25 as follows:

21        (30 ILCS 805/8.25 new)
22        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
23    and 8 of this Act, no reimbursement by the State is  required
24    for  the  implementation  of  any  mandate  created  by  this
25    amendatory Act of the 92nd General Assembly.

26        Section  99.  Effective date.  This Act takes effect upon
27    becoming law.

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