093_HB1124

 
                                     LRB093 06100 LRD 06205 b

 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    or who retires on or after January 1, 2001 at an  age  which,
14    when  added  to  the number of years of his or her creditable
15    service, equals  at  least  85,  shall,  on  January  1  next
16    following  the first full year of retirement, have the amount
17    of the then fixed  and  payable  monthly  retirement  annuity
18    increased  3%.   Any  person  receiving  a retirement annuity
19    under this Article who retires before attainment  of  age  60
20    and  with  less  than  (i)  35 years of creditable service if
21    retirement is before January 1, 2001, or (ii) the  number  of
22    years of creditable service which, when added to the member's
23    age,  would equal 85, if retirement is on or after January 1,
24    2001,  shall  have  the  amount  of  the  fixed  and  payable
25    retirement annuity increased by 3% on the January 1 occurring
26    on or next following (1) attainment of age  60,  or  (2)  the
27    first  anniversary  of  retirement,  whichever  occurs later.
28    However, for persons who receive the  alternative  retirement
29    annuity  under  Section 14-110, references in this subsection
30    (a) to attainment of age 60  shall  be  deemed  to  refer  to
31    attainment   of   age  55.   For  a  person  receiving  early
 
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 1    retirement incentives under Section 14-108.3 whose retirement
 2    annuity began after January 1, 1992 pursuant to an  extension
 3    granted  under  subsection  (e)  of  that  Section, the first
 4    anniversary of retirement shall be deemed to  be  January  1,
 5    1993.  For a person who retires on or after June 28, 2001 and
 6    on or before October 1, 2001, and whose retirement annuity is
 7    calculated, in whole or in  part,  under  Section  14-110  or
 8    subsection   (g)   or   (h)  of  Section  14-108,  the  first
 9    anniversary of retirement shall be deemed to  be  January  1,
10    2002.
11        On  each  January  1  following  the  date of the initial
12    increase  under  this  subsection,  the  employee's   monthly
13    retirement annuity shall be increased by an additional 3%.
14        Beginning January 1, 1990, all automatic annual increases
15    payable   under   this  Section  shall  be  calculated  as  a
16    percentage of the total annuity payable at the  time  of  the
17    increase,  including  previous  increases  granted under this
18    Article.
19        (b)  The provisions of subsection  (a)  of  this  Section
20    shall be applicable to an employee only if the employee makes
21    the additional contributions required after December 31, 1969
22    for  the purpose of the automatic increases for not less than
23    the equivalent of one full year. If an  employee  becomes  an
24    annuitant  before his additional contributions equal one full
25    year's contributions based on  his  salary  at  the  date  of
26    retirement, the employee may pay the necessary balance of the
27    contributions   to  the  system,  without  interest,  and  be
28    eligible  for  the  increasing  annuity  authorized  by  this
29    Section.
30        (c)  The provisions of subsection  (a)  of  this  Section
31    shall not be applicable to any annuitant who is on retirement
32    on  December  31,  1969,  and  thereafter  returns  to  State
33    service,  unless the member has established at least one year
34    of  additional  creditable  service  following  reentry  into
 
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 1    service.
 2        (d)  In addition to other increases which may be provided
 3    by this Section, on January 1, 1981  any  annuitant  who  was
 4    receiving  a  retirement annuity on or before January 1, 1971
 5    shall have his retirement annuity then being  paid  increased
 6    $1 per month for each year of creditable service.  On January
 7    1,  1982,  any  annuitant  who  began  receiving a retirement
 8    annuity  on  or  before  January  1,  1977,  shall  have  his
 9    retirement annuity then being paid increased $1 per month for
10    each year of creditable service.
11        On January 1, 1987, any annuitant who began  receiving  a
12    retirement  annuity  on or before January 1, 1977, shall have
13    the monthly retirement annuity increased by an  amount  equal
14    to  8¢  per  year  of  creditable service times the number of
15    years that have elapsed since the annuity began.
16        (d-1)  On January 1,  2004,  every  annuitant  who  began
17    receiving  a  retirement annuity on or before January 1, 1991
18    shall have the monthly retirement  annuity  increased  by  an
19    amount equal to 25¢ multiplied by the number of full years of
20    creditable  service  multiplied  by  the number of full years
21    that have elapsed since the annuity began.   Every  annuitant
22    who  begins  receiving  a retirement annuity after January 1,
23    1991 and before  January  1,  1998  shall  have  the  monthly
24    retirement  annuity  increased  on  January 1, 2004 or on the
25    January  1  occurring  on  or  next  following  the   seventh
26    anniversary  of  retirement, whichever is later, by an amount
27    equal to $1.75 multiplied by the  number  of  full  years  of
28    creditable  service  upon  which  the  retirement  annuity is
29    based.  The increase under this subsection shall be  included
30    in  the  calculation  of  increases granted simultaneously or
31    thereafter under subsection (a).
32        (e)  Every person who receives the alternative retirement
33    annuity under Section 14-110 and who is eligible  to  receive
34    the  3%  increase  under  subsection  (a) on January 1, 1986,
 
                            -4-      LRB093 06100 LRD 06205 b
 1    shall also receive  on  that  date  a  one-time  increase  in
 2    retirement  annuity  equal  to the difference between (1) his
 3    actual  retirement  annuity  on  that  date,  including   any
 4    increases  received  under subsection (a), and (2) the amount
 5    of retirement annuity he would have received on that date  if
 6    the  amendments  to  subsection (a) made by Public Act 84-162
 7    had been in effect since the date of his retirement.
 8    (Source: P.A. 91-927, eff.  12-14-00;  92-14,  eff.  6-28-01;
 9    92-651, eff. 7-11-02.)

10        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
11        Sec. 14-119.  Amount of widow's annuity.
12        (a)  The  widow's  annuity  shall be 50% of the amount of
13    retirement annuity payable to the member on the date of death
14    while on retirement if an annuitant, or on the  date  of  his
15    death  while in service if an employee, regardless of his age
16    on such date, or on the date of withdrawal if death  occurred
17    after  termination of service under the conditions prescribed
18    in the preceding Section.
19        (b)  If an eligible widow, regardless of age, has in  her
20    care  any unmarried child or children of the member under age
21    18 (under age 22 if a full-time student), the widow's annuity
22    shall be increased in the amount  of  5%  of  the  retirement
23    annuity  for each such child, but the combined payments for a
24    widow and children shall not exceed 66 2/3% of  the  member's
25    earned retirement annuity.
26        The  amount  of retirement annuity from which the widow's
27    annuity is derived shall be that earned by the member without
28    regard to whether he attained age 60 prior to his  withdrawal
29    under the conditions stated or prior to his death.
30        (c)  Adopted  children shall be considered as children of
31    the  member  only  if  the  proceedings  for  adoption   were
32    commenced at least 1 year prior to the member's death.
33        Marriage of a child shall render the child ineligible for
 
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 1    further  consideration  in  the increase in the amount of the
 2    widow's annuity.
 3        Attainment of age 18 (age  22  if  a  full-time  student)
 4    shall  render a child ineligible for further consideration in
 5    the increase of the widow's annuity, but the annuity  to  the
 6    widow  shall  be  continued thereafter, without regard to her
 7    age at that time.
 8        (d)  A widow's annuity payable on account of any  covered
 9    employee  who shall have been a covered employee for at least
10    18 months shall be reduced by 1/2 of the amount of  survivors
11    benefits  to  which  his beneficiaries are eligible under the
12    provisions of the Federal Social Security  Act,  except  that
13    (1)  the  amount  of  any  widow's annuity payable under this
14    Article shall not be reduced by reason of any increase  under
15    that  Act  which  occurs  after  the  offset required by this
16    subsection is first applied to  that  annuity,  and  (2)  for
17    benefits  granted  on  or  after  January 1, 1992, the offset
18    under this subsection (d) shall not exceed 50% of the  amount
19    of widow's annuity otherwise payable.
20        (e)  Upon  the  death of a recipient of a widow's annuity
21    the  excess,  if     any,   of   the   member's   accumulated
22    contributions   plus   credited  interest  over  all  annuity
23    payments to the member and widow, exclusive of the $500  lump
24    sum  payment,  shall  be paid to the named beneficiary of the
25    widow, or if none has been named, to the estate of the widow,
26    provided no reversionary annuity is payable.
27        (f)  On January 1,  1981,  any  recipient  of  a  widow's
28    annuity  who  was  receiving  a  widow's annuity on or before
29    January 1, 1971, shall have her widow's  annuity  then  being
30    paid  increased  by  1%  for each full year which has elapsed
31    from the date the widow's annuity began.  On January 1, 1982,
32    any recipient of a widow's  annuity  who  began  receiving  a
33    widow's  annuity after January 1, 1971, but before January 1,
34    1981,  shall  have  her  widow's  annuity  then  being   paid
 
                            -6-      LRB093 06100 LRD 06205 b
 1    increased by 1% for each full year which has elapsed from the
 2    date  the  widow's  annuity  began.   On January 1, 1987, any
 3    recipient of  a  widow's  annuity  who  began  receiving  the
 4    widow's  annuity on or before January 1, 1977, shall have the
 5    monthly widow's annuity increased by $1 for  each  full  year
 6    which has elapsed since the date the annuity began.
 7        (f-1)  On   January   1,  2004,  every  widow  who  began
 8    receiving a widow's annuity on  or  before  January  1,  1991
 9    shall have the monthly widow's annuity increased by an amount
10    equal  to  25¢  multiplied by the number of full years of the
11    deceased spouse's creditable service multiplied by the sum of
12    (i) the number of full years  that  have  elapsed  since  the
13    widow's  annuity  began and (ii) the number of full years, if
14    any, during which the deceased spouse received  a  retirement
15    annuity under this Article.  Every widow who begins receiving
16    a widow's annuity after January 1, 1991 and before January 1,
17    2004  shall  have  the  monthly  widow's annuity increased on
18    January 1, 2004 or on the January  1  occurring  on  or  next
19    following  the seventh anniversary of the commencement of the
20    widow's annuity, whichever is later, by an  amount  equal  to
21    25¢  multiplied  by  the number of full years of the deceased
22    spouse's creditable service multiplied by the sum of (i)  the
23    number  of  full  years  that  have elapsed since the widow's
24    annuity began and (ii) the number  of  full  years,  if  any,
25    during  which  the  deceased  spouse  received  a  retirement
26    annuity   under   this  Article.   The  increase  under  this
27    subsection shall be included in the calculation of  increases
28    granted simultaneously or thereafter under subsection (g).
29        (g)  Beginning  January  1,  1990,  every widow's annuity
30    shall be increased (1) on each  January  1  occurring  on  or
31    after  the commencement of the annuity if the deceased member
32    died while receiving a retirement annuity, or  (2)  in  other
33    cases,  on  each  January  1  occurring on or after the first
34    anniversary of the commencement of the annuity, by an  amount
 
                            -7-      LRB093 06100 LRD 06205 b
 1    equal  to  3% of the current amount of the annuity, including
 2    any previous increases under  this  Article.  Such  increases
 3    shall apply without regard to whether the deceased member was
 4    in  service  on  or  after  the  effective date of Public Act
 5    86-1488, but shall not accrue for any period prior to January
 6    1, 1990.
 7    (Source: P.A. 90-448, eff. 8-16-97.)

 8        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
 9        Sec. 14-121.  Amount of survivors annuity.   A  survivors
10    annuity  beneficiary  shall  be  entitled  upon  death of the
11    member to a single sum payment of $1,000,  payable  pro  rata
12    among all persons entitled thereto, together with a survivors
13    annuity  payable  at  the  rates  and  under  the  conditions
14    specified in this Article.
15        (a)  If  the  survivors  annuity beneficiary is a spouse,
16    the  survivors  annuity  shall  be  30%  of   final   average
17    compensation subject to a maximum payment of $400 per month.
18        (b)  If an eligible child or children under the care of a
19    spouse  also  survives  the  member,  such  spouse as natural
20    guardian of the child or children shall receive, in  addition
21    to  the  foregoing annuity, 20% of final average compensation
22    on account of each  such  child  and  10%  of  final  average
23    compensation divided pro rata among such children, subject to
24    a   maximum  payment  on  account  of  all  survivor  annuity
25    beneficiaries of $600 per month, or 80% of the member's final
26    average compensation, whichever is the lesser.
27        (c)  If   the   survivors    annuity    beneficiary    or
28    beneficiaries consists of an unmarried child or children, the
29    amount  of  survivors  annuity  shall be 20% of final average
30    compensation  to  each  child,  and  10%  of  final   average
31    compensation   divided  pro  rata  among  all  such  children
32    entitled to such annuity, subject to a maximum payment to all
33    children combined of $600 per month or 80%  of  the  member's
 
                            -8-      LRB093 06100 LRD 06205 b
 1    final average compensation, whichever is the lesser.
 2        (d)  If  the survivors annuity beneficiary is one or more
 3    dependent parents, the annuity shall be 20% of final  average
 4    compensation   to  each  parent  and  10%  of  final  average
 5    compensation divided pro rata among the parents  who  qualify
 6    for  this  annuity,  subject  to  a  maximum  payment to both
 7    dependent parents of $400 per month.
 8        (e)  The survivors annuity to  the  spouse,  children  or
 9    dependent  parents  of  a member whose death occurs after the
10    date of last withdrawal, or after  retirement,  or  while  in
11    service  following  reentry into service after retirement but
12    before  completing  1  1/2  years  of  additional  creditable
13    service, shall not exceed the lesser of 80% of  the  member's
14    earned retirement annuity at the date of death or the maximum
15    previously established in this Section.
16        (f)  In   applying   the  limitation  prescribed  on  the
17    combined  payments   to   2   or   more   survivors   annuity
18    beneficiaries,  the  annuity  on  account of each beneficiary
19    shall be reduced pro rata until such time as  the  number  of
20    beneficiaries makes the reduction no longer applicable.
21        (g)  A  survivors  annuity  payable  on  account  of  any
22    covered  employee  who shall have been a covered employee for
23    at least 18 months at  date  of  death  or  last  withdrawal,
24    whichever  is  the  later,  shall  be  reduced  by 1/2 of the
25    survivors benefits to which his  beneficiaries  are  eligible
26    under  the  federal  Social Security Act, except that (1) the
27    survivors annuity payable under this  Article  shall  not  be
28    reduced by any increase under that Act which occurs after the
29    offset  required  by this subsection is first applied to that
30    annuity, and (2) for benefits granted on or after January  1,
31    1992,  the  offset under this subsection (g) shall not exceed
32    50% of the amount of survivors annuity otherwise payable.
33        (h)  The minimum payment to a beneficiary hereunder shall
34    be $60 per month, which shall be reduced in  accordance  with
 
                            -9-      LRB093 06100 LRD 06205 b
 1    the  limitation  prescribed  on  the combined payments to all
 2    beneficiaries of a member.
 3        (i)  Subject to  the  conditions  set  forth  in  Section
 4    14-120,  the  minimum total survivors annuity benefit payable
 5    to the survivors annuity beneficiaries of a  deceased  member
 6    or  annuitant whose death occurs on or after January 1, 1984,
 7    shall be 50% of the amount of retirement annuity that was  or
 8    would have been payable to the deceased on the date of death,
 9    regardless  of  the age of the deceased on such date.  If the
10    minimum total benefit provided by this subsection exceeds the
11    maximum otherwise imposed by this Section, the minimum  total
12    benefit  shall  nevertheless be payable.  Any increase in the
13    total survivors annuity benefit resulting from the  operation
14    of  this  subsection  shall  be  divided  among the survivors
15    annuity beneficiaries of the deceased in proportion to  their
16    shares  of  the  total  survivors  annuity  benefit otherwise
17    payable under this Section.
18        (j)  Any  survivors  annuity  beneficiary  whose  annuity
19    terminates due to any condition  specified  in  this  Article
20    other than death shall be entitled to a refund of the excess,
21    if  any,  of the accumulated contributions of the member plus
22    credited  interest  over  all  payments  to  the  member  and
23    beneficiary or beneficiaries, exclusive  of  the  single  sum
24    payment   of   $1,000,   provided   no  future  survivors  or
25    reversionary annuity benefits are payable.
26        (k)  Upon the death of the last eligible recipient  of  a
27    survivors  annuity  the  excess,  if  any,  of  the  member's
28    accumulated  contributions  plus  credited  interest over all
29    annuity payments to the member and survivors exclusive of the
30    single sum payment of $1000,  shall  be  paid  to  the  named
31    beneficiary  of  the  last  eligible survivor, or if none has
32    been named, to the estate  of  the  last  eligible  survivor,
33    provided no reversionary annuity is payable.
34        (l)  On January 1, 1981, any survivor who was receiving a
 
                            -10-     LRB093 06100 LRD 06205 b
 1    survivors  annuity  on  or before January 1, 1971, shall have
 2    his survivors annuity then being paid  increased  by  1%  for
 3    each  full  year  which has elapsed from the date the annuity
 4    began.  On January 1, 1982, any survivor who began  receiving
 5    a  survivor's  annuity  after  January  1,  1971,  but before
 6    January 1, 1981, shall have his survivor's annuity then being
 7    paid increased by 1% for each full year that has elapsed from
 8    the date the annuity began. On January 1, 1987, any  survivor
 9    who began receiving a survivor's annuity on or before January
10    1,  1977, shall have the monthly survivor's annuity increased
11    by $1 for each full year which has elapsed since the date the
12    survivor's annuity began.
13        (m)  Beginning January 1, 1990, every survivor's  annuity
14    shall  be  increased  (1)  on  each January 1 occurring on or
15    after the commencement of the annuity if the deceased  member
16    died  while  receiving  a retirement annuity, or (2) in other
17    cases, on each January 1 occurring  on  or  after  the  first
18    anniversary  of the commencement of the annuity, by an amount
19    equal to 3% of the current amount of the  annuity,  including
20    any  previous  increases  under this Article.  Such increases
21    shall apply without regard to whether the deceased member was
22    in service on or after  the  effective  date  of  Public  Act
23    86-1488, but shall not accrue for any period prior to January
24    1, 1990.
25        (n)  On   January  1,  2004,  every  survivor  who  began
26    receiving a survivor's annuity on or before January  1,  1991
27    shall  have  the  monthly  survivor's annuity increased by an
28    amount equal to 25¢ multiplied by the number of full years of
29    the deceased's creditable service multiplied by  the  sum  of
30    (i)  the  number  of  full  years that have elapsed since the
31    survivor's annuity began and (ii) the number of  full  years,
32    if  any,  during  which  the  deceased  received a retirement
33    annuity under  this  Article.    Every  survivor  who  begins
34    receiving  a  survivor's  annuity  after  January 1, 1991 and
 
                            -11-     LRB093 06100 LRD 06205 b
 1    before January 1, 2004  shall  have  the  monthly  survivor's
 2    annuity  increased  on  January  1,  2004 or on the January 1
 3    occurring on or next following the seventh anniversary of the
 4    commencement of the survivor's annuity, whichever  is  later,
 5    by  an  amount  equal to 25¢ multiplied by the number of full
 6    years of the deceased's creditable service multiplied by  the
 7    sum  of  (i) the number of full years that have elapsed since
 8    the survivor's annuity began and  (ii)  the  number  of  full
 9    years,   if   any,  during  which  the  deceased  received  a
10    retirement annuity under this Article.   The  increase  under
11    this  subsection  shall  be  included  in  the calculation of
12    increases  granted   simultaneously   or   thereafter   under
13    subsection (m).
14    (Source: P.A. 86-273; 86-1488; 87-794.)

15        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
16        Sec.   15-136.  Retirement   annuities   -  Amount.   The
17    provisions  of  this  Section  15-136  apply  only  to  those
18    participants who are participating in the traditional benefit
19    package or the portable benefit package and do not  apply  to
20    participants who are participating in the self-managed plan.
21        (a)  The  amount  of  a participant's retirement annuity,
22    expressed in the form of  a  single-life  annuity,  shall  be
23    determined  by whichever of the following rules is applicable
24    and provides the largest annuity:
25        Rule 1:  The retirement annuity shall be 1.67%  of  final
26    rate  of  earnings for each of the first 10 years of service,
27    1.90% for each of the next 10 years  of  service,  2.10%  for
28    each  year  of  service in excess of 20 but not exceeding 30,
29    and 2.30% for each year in excess of 30; or for  persons  who
30    retire on or after January 1, 1998, 2.2% of the final rate of
31    earnings for each year of service.
32        Rule  2:  The  retirement annuity shall be the sum of the
33    following,  determined   from   amounts   credited   to   the
 
                            -12-     LRB093 06100 LRD 06205 b
 1    participant  in  accordance with the actuarial tables and the
 2    prescribed rate  of  interest  in  effect  at  the  time  the
 3    retirement annuity begins:
 4             (i)  the  normal annuity which can be provided on an
 5        actuarially equivalent basis, by the  accumulated  normal
 6        contributions as of the date the annuity begins; and
 7             (ii)  an  annuity  from employer contributions of an
 8        amount  equal  to  that  which  can  be  provided  on  an
 9        actuarially equivalent basis from the accumulated  normal
10        contributions  made  by  the  participant  under  Section
11        15-113.6  and  Section  15-113.7 plus 1.4 times all other
12        accumulated normal contributions made by the participant.
13        With respect to  a  police  officer  or  firefighter  who
14    retires  on  or after August 14, 1998, the accumulated normal
15    contributions taken into account under clauses (i)  and  (ii)
16    of   this   Rule   2  shall  include  the  additional  normal
17    contributions made by the police officer or firefighter under
18    Section 15-157(a).
19        The amount of a retirement annuity calculated under  this
20    Rule  2  shall  be  computed  solely  on  the  basis  of  the
21    participant's  accumulated normal contributions, as specified
22    in this Rule  and  defined  in  Section  15-116.  Neither  an
23    employee  or employer contribution for early retirement under
24    Section 15-136.2 nor any other employer contribution shall be
25    used in the calculation of the amount of a retirement annuity
26    under this Rule 2.
27        This amendatory Act of the 91st  General  Assembly  is  a
28    clarification   of   existing   law   and  applies  to  every
29    participant and annuitant without regard to whether status as
30    an employee terminates before  the  effective  date  of  this
31    amendatory Act.
32        Rule  3:  The  retirement annuity of a participant who is
33    employed at least one-half time during the  period  on  which
34    his or her final rate of earnings is based, shall be equal to
 
                            -13-     LRB093 06100 LRD 06205 b
 1    the   participant's  years  of  service  not  to  exceed  30,
 2    multiplied by (1) $96 if  the  participant's  final  rate  of
 3    earnings  is  less than $3,500, (2) $108 if the final rate of
 4    earnings is at least $3,500 but less than $4,500, (3) $120 if
 5    the final rate of earnings is at least $4,500 but  less  than
 6    $5,500,  (4)  $132  if the final rate of earnings is at least
 7    $5,500 but less than $6,500, (5) $144 if the  final  rate  of
 8    earnings is at least $6,500 but less than $7,500, (6) $156 if
 9    the  final  rate of earnings is at least $7,500 but less than
10    $8,500, (7) $168 if the final rate of earnings  is  at  least
11    $8,500  but  less than $9,500, and (8) $180 if the final rate
12    of earnings is $9,500 or more, except that  the  annuity  for
13    those   persons   having   made  an  election  under  Section
14    15-154(a-1)  shall  be  calculated  and  payable  under   the
15    portable   retirement   benefit   program   pursuant  to  the
16    provisions of Section 15-136.4.
17        Rule 4:  A participant who is at least age 50 and has  25
18    or  more years of service as a police officer or firefighter,
19    and a participant who is age 55 or over and has at  least  20
20    but  less  than  25  years  of service as a police officer or
21    firefighter, shall be entitled to  a  retirement  annuity  of
22    2 1/4% of the final rate of earnings for each of the first 10
23    years  of  service as a police officer or firefighter, 2 1/2%
24    for each of the next 10 years of service as a police  officer
25    or  firefighter,  and  2 3/4%  for  each year of service as a
26    police  officer  or  firefighter  in  excess  of   20.    The
27    retirement  annuity  for  all other service shall be computed
28    under Rule 1.
29        For purposes of this Rule 4, a participant's service as a
30    firefighter shall also include the following:
31             (i)  service that is performed while the  person  is
32        an employee under subsection (h) of Section 15-107; and
33             (ii)  in  the  case  of  an  individual  who  was  a
34        participating employee employed in the fire department of
 
                            -14-     LRB093 06100 LRD 06205 b
 1        the  University  of  Illinois's  Champaign-Urbana  campus
 2        immediately   prior  to  the  elimination  of  that  fire
 3        department and who immediately after the  elimination  of
 4        that  fire department transferred to another job with the
 5        University of Illinois, service performed as an  employee
 6        of  the  University  of Illinois in a position other than
 7        police officer or firefighter,  from  the  date  of  that
 8        transfer until the employee's next termination of service
 9        with the University of Illinois.
10        Rule  5:  The  retirement  annuity  of  a participant who
11    elected early retirement  under  the  provisions  of  Section
12    15-136.2  and  who,  on  or before February 16, 1995, brought
13    administrative proceedings  pursuant  to  the  administrative
14    rules  adopted  by the System to challenge the calculation of
15    his or her  retirement  annuity  shall  be  the  sum  of  the
16    following,   determined   from   amounts   credited   to  the
17    participant in accordance with the actuarial tables  and  the
18    prescribed  rate  of  interest  in  effect  at  the  time the
19    retirement annuity begins:
20             (i)  the normal annuity which can be provided on  an
21        actuarially  equivalent  basis, by the accumulated normal
22        contributions as of the date the annuity begins; and
23             (ii)  an annuity from employer contributions  of  an
24        amount  equal  to  that  which  can  be  provided  on  an
25        actuarially  equivalent basis from the accumulated normal
26        contributions  made  by  the  participant  under  Section
27        15-113.6 and Section 15-113.7 plus 1.4  times  all  other
28        accumulated normal contributions made by the participant;
29        and
30             (iii)  an  annuity  which  can  be  provided  on  an
31        actuarially    equivalent   basis   from   the   employee
32        contribution for early retirement under Section 15-136.2,
33        and an annuity from employer contributions of  an  amount
34        equal  to  that  which  can be provided on an actuarially
 
                            -15-     LRB093 06100 LRD 06205 b
 1        equivalent basis from the employee contribution for early
 2        retirement under Section 15-136.2.
 3        In no event shall a retirement annuity under this Rule  5
 4    be  lower  than the amount obtained by adding (1) the monthly
 5    amount  obtained  by  dividing  the  combined  employee   and
 6    employer  contributions  made  under  Section 15-136.2 by the
 7    System's annuity factor for the age of the participant at the
 8    beginning of the annuity payment period and  (2)  the  amount
 9    equal  to  the participant's annuity if calculated under Rule
10    1, reduced under Section 15-136(b) as if no contributions had
11    been made under Section 15-136.2.
12        With respect to a participant  who  is  qualified  for  a
13    retirement annuity under this Rule 5 whose retirement annuity
14    began before the effective date of this amendatory Act of the
15    91st  General Assembly, and for whom an employee contribution
16    was made under Section 15-136.2, the System shall recalculate
17    the retirement annuity under this Rule 5 and  shall  pay  any
18    additional  amounts  due  in  the  manner provided in Section
19    15-186.1 for benefits mistakenly set too low.
20        The amount of a retirement annuity calculated under  this
21    Rule  5  shall  be  computed  solely  on  the  basis of those
22    contributions specifically set forth in this Rule 5.   Except
23    as  provided  in  clause  (iii)  of  this  Rule 5, neither an
24    employee nor employer contribution for early retirement under
25    Section 15-136.2, nor any other employer contribution,  shall
26    be  used  in  the  calculation  of the amount of a retirement
27    annuity under this Rule 5.
28        The General Assembly has adopted the changes set forth in
29    Section 25  of  this  amendatory  Act  of  the  91st  General
30    Assembly  in  recognition  that the decision of the Appellate
31    Court for the Fourth District in Mattis v. State Universities
32    Retirement System et al. might be deemed to give  some  right
33    to  the  plaintiff in that case.  The changes made by Section
34    25 of this amendatory Act of the 91st General Assembly are  a
 
                            -16-     LRB093 06100 LRD 06205 b
 1    legislative  implementation  of the decision of the Appellate
 2    Court for the Fourth District in Mattis v. State Universities
 3    Retirement System et al. with respect to that plaintiff.
 4        The changes made by Section 25 of this amendatory Act  of
 5    the 91st General Assembly apply without regard to whether the
 6    person is in service as an employee on or after its effective
 7    date.
 8        (b)  The  retirement annuity provided under Rules 1 and 3
 9    above shall be reduced by  1/2  of  1%  for  each  month  the
10    participant  is  under  age  60  at  the  time of retirement.
11    However, this reduction shall  not  apply  in  the  following
12    cases:
13             (1)  For  a  disabled  participant  whose disability
14        benefits have been discontinued because  he  or  she  has
15        exhausted   eligibility  for  disability  benefits  under
16        clause (6) of Section 15-152;
17             (2)  For a participant who has at least  the  number
18        of  years  of service required to retire at any age under
19        subsection (a) of Section 15-135; or
20             (3)  For that portion of a retirement annuity  which
21        has   been   provided   on  account  of  service  of  the
22        participant during periods when he or she  performed  the
23        duties  of  a  police  officer  or  firefighter, if these
24        duties were performed for at least  5  years  immediately
25        preceding the date the retirement annuity is to begin.
26        (c)  The  maximum retirement annuity provided under Rules
27    1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
28    benefits as specified in Section 415 of the Internal  Revenue
29    Code  of  1986,  as  such Section may be amended from time to
30    time and as such benefit limits  shall  be  adjusted  by  the
31    Commissioner  of  Internal Revenue, and (2) 80% of final rate
32    of earnings.
33        (d)  An annuitant whose status as an employee  terminates
34    after  August  14,  1969 shall receive automatic increases in
 
                            -17-     LRB093 06100 LRD 06205 b
 1    his or her retirement annuity as follows:
 2        Effective January 1 immediately following  the  date  the
 3    retirement  annuity  begins,  the  annuitant shall receive an
 4    increase in his or her monthly retirement annuity  of  0.125%
 5    of the monthly retirement annuity provided under Rule 1, Rule
 6    2,  Rule  3,  Rule  4,  or Rule 5, contained in this Section,
 7    multiplied by the number of full months  which  elapsed  from
 8    the  date the retirement annuity payments began to January 1,
 9    1972, plus 0.1667% of such annuity, multiplied by the  number
10    of  full  months  which  elapsed from January 1, 1972, or the
11    date the retirement  annuity  payments  began,  whichever  is
12    later,  to  January  1,  1978,  plus  0.25%  of  such annuity
13    multiplied by the number of full months  which  elapsed  from
14    January  1, 1978, or the date the retirement annuity payments
15    began, whichever is later,  to  the  effective  date  of  the
16    increase.
17        The  annuitant  shall  receive  an increase in his or her
18    monthly retirement  annuity  on  each  January  1  thereafter
19    during  the  annuitant's  life  of  3% of the monthly annuity
20    provided under Rule 1, Rule 2, Rule 3,  Rule  4,  or  Rule  5
21    contained  in  this  Section.   The  change  made  under this
22    subsection by P.A. 81-970 is effective January  1,  1980  and
23    applies  to  each  annuitant  whose  status  as  an  employee
24    terminates before or after that date.
25        Beginning January 1, 1990, all automatic annual increases
26    payable   under   this  Section  shall  be  calculated  as  a
27    percentage of the total annuity payable at the  time  of  the
28    increase,  including  all  increases previously granted under
29    this Article.
30        The change made in this subsection  by  P.A.  85-1008  is
31    effective  January 26, 1988, and is applicable without regard
32    to whether status as an employee terminated before that date.
33        (e)  If, on January 1, 1987, or the date  the  retirement
34    annuity payment period begins, whichever is later, the sum of
 
                            -18-     LRB093 06100 LRD 06205 b
 1    the  retirement  annuity  provided  under Rule 1 or Rule 2 of
 2    this Section and  the  automatic  annual  increases  provided
 3    under  the  preceding subsection or Section 15-136.1, amounts
 4    to less than the retirement annuity which would  be  provided
 5    by  Rule  3,  the retirement annuity shall be increased as of
 6    January 1, 1987, or the date the retirement  annuity  payment
 7    period  begins, whichever is later, to the amount which would
 8    be provided by Rule 3 of this Section. Such increased  amount
 9    shall  be considered as the retirement annuity in determining
10    benefits provided under other Sections of this Article.  This
11    paragraph  applies  without  regard  to  whether status as an
12    employee  terminated  before  the  effective  date  of   this
13    amendatory  Act  of  1987,  provided  that  the annuitant was
14    employed at least one-half time during the  period  on  which
15    the final rate of earnings was based.
16        (f)  A participant is entitled to such additional annuity
17    as may be provided on an actuarially equivalent basis, by any
18    accumulated  additional  contributions  to his or her credit.
19    However, the additional contributions made by the participant
20    toward the automatic increases in annuity provided under this
21    Section shall not be taken into account  in  determining  the
22    amount of such additional annuity.
23        (g)  If,  (1)  by law, a function of a governmental unit,
24    as defined by Section 20-107 of this Code, is transferred  in
25    whole  or  in  part  to  an  employer,  and (2) a participant
26    transfers employment from  such  governmental  unit  to  such
27    employer  within 6 months after the transfer of the function,
28    and (3) the sum of (A) the annuity payable to the participant
29    under Rule 1, 2, or 3 of this Section  (B)  all  proportional
30    annuities  payable to the participant by all other retirement
31    systems covered by Article 20, and (C)  the  initial  primary
32    insurance  amount  to which the participant is entitled under
33    the Social Security Act, is less than the retirement  annuity
34    which  would  have  been  payable if all of the participant's
 
                            -19-     LRB093 06100 LRD 06205 b
 1    pension credits  validated  under  Section  20-109  had  been
 2    validated  under this system, a supplemental annuity equal to
 3    the difference in  such  amounts  shall  be  payable  to  the
 4    participant.
 5        (h)  On January 1, 1981, an annuitant who was receiving a
 6    retirement  annuity  on  or before January 1, 1971 shall have
 7    his or her retirement annuity then being  paid  increased  $1
 8    per  month for each year of creditable service. On January 1,
 9    1982, an annuitant  whose  retirement  annuity  began  on  or
10    before  January  1,  1977,  shall  have his or her retirement
11    annuity then being paid increased $1 per month for each  year
12    of creditable service.
13        (i)  On  January  1, 1987, any annuitant whose retirement
14    annuity began on or before January 1, 1977,  shall  have  the
15    monthly retirement annuity increased by an amount equal to 8¢
16    per year of creditable service times the number of years that
17    have elapsed since the annuity began.
18        (j)  On  January  1,  2004,  every  annuitant  who  began
19    receiving  a  retirement annuity on or before January 1, 1991
20    shall have the monthly retirement  annuity  increased  by  an
21    amount equal to 25¢ multiplied by the number of full years of
22    creditable  service  multiplied  by  the number of full years
23    that have elapsed since the annuity began.   Every  annuitant
24    who  begins  receiving  a retirement annuity after January 1,
25    1991 and before  January  1,  1998  shall  have  the  monthly
26    retirement  annuity  increased  on  January 1, 2004 or on the
27    January  1  occurring  on  or  next  following  the   seventh
28    anniversary  of  retirement, whichever is later, by an amount
29    equal to $1.75 multiplied by the  number  of  full  years  of
30    creditable  service  upon  which  the  retirement  annuity is
31    based.  The increase under this subsection shall be  included
32    in  the  calculation  of  increases granted simultaneously or
33    thereafter under subsection (d).
34    (Source: P.A. 91-887  (Sections  20  and  25),  eff.  7-6-00;
 
                            -20-     LRB093 06100 LRD 06205 b
 1    92-16, eff. 6-28-01.)

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

24        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
25        Sec. 15-145.  Survivors  insurance  benefits;  conditions
26    and amounts.
27        (a)  The survivors insurance benefits provided under this
28    Section  shall  be  payable  to  the  eligible survivors of a
29    participant covered under  the  traditional  benefit  package
30    upon  the death of (1) a participating employee with at least
31    1 1/2 years of service,  (2)  a  participant  who  terminated
32    employment  with  at  least  10  years of service, and (3) an
 
                            -21-     LRB093 06100 LRD 06205 b
 1    annuitant in receipt of a retirement  annuity  or  disability
 2    retirement annuity under this Article.
 3        Service  under  the State Employees' Retirement System of
 4    Illinois, the Teachers' Retirement System  of  the  State  of
 5    Illinois   and   the  Public  School  Teachers'  Pension  and
 6    Retirement Fund of Chicago shall be considered in determining
 7    eligibility for survivors benefits under this Section.
 8        If by law, a function of a governmental unit, as  defined
 9    by  Section  20-107, is transferred in whole or in part to an
10    employer, and an  employee  transfers  employment  from  this
11    governmental  unit to such employer within 6 months after the
12    transfer  of  this  function,  the  service  credits  in  the
13    governmental  unit's  retirement  system  which   have   been
14    validated   under  Section  20-109  shall  be  considered  in
15    determining eligibility for  survivors  benefits  under  this
16    Section.
17        (b)  A  surviving spouse of a deceased participant, or of
18    a deceased annuitant who did not take a refund or  additional
19    annuity   consisting   of   accumulated  survivors  insurance
20    contributions, shall receive a survivors annuity  of  30%  of
21    the  final rate of earnings.  Payments shall begin on the day
22    following the participant's or annuitant's death or the  date
23    the  surviving spouse attains age 50, whichever is later, and
24    continue until  the  death  of  the  surviving  spouse.   The
25    annuity  shall  be  payable  to the surviving spouse prior to
26    attainment of age 50 if the surviving spouse has  in  his  or
27    her  care  a  deceased participant's or annuitant's dependent
28    unmarried child under age 18 (under age  22  if  a  full-time
29    student) who is eligible for a survivors annuity.
30        Remarriage  of  a surviving spouse prior to attainment of
31    age  55  that  occurs  before  the  effective  date  of  this
32    amendatory Act of the 91st General Assembly shall  disqualify
33    him  or her for the receipt of a survivors annuity until July
34    6, 2000.
 
                            -22-     LRB093 06100 LRD 06205 b
 1        A surviving  spouse  whose  survivors  annuity  has  been
 2    terminated  due  to remarriage may apply for reinstatement of
 3    that annuity.  The reinstated annuity shall begin  to  accrue
 4    on July 6, 2000, except that if, on July 6, 2000, the annuity
 5    is  payable to an eligible surviving child or parent, payment
 6    of  the  annuity  to  the  surviving  spouse  shall  not   be
 7    reinstated  until  the  annuity  is  no longer payable to any
 8    eligible surviving child or parent.  The  reinstated  annuity
 9    shall include any one-time or annual increases received prior
10    to  the  date  of  termination, as well as any increases that
11    would otherwise have accrued from the date of termination  to
12    the  date  of  reinstatement.    An eligible surviving spouse
13    whose expectation of receiving a survivors annuity  was  lost
14    due  to  remarriage before attainment of age 50 shall also be
15    entitled to reinstatement  under  this  subsection,  but  the
16    resulting  survivors annuity shall not begin to accrue sooner
17    than upon the surviving spouse's attainment of age 50.
18        The changes made to this subsection  by  this  amendatory
19    Act  of  the  92nd General Assembly (pertaining to remarriage
20    prior to age 55 or 50) apply without regard  to  whether  the
21    deceased  participant or annuitant was in service on or after
22    the effective date of this amendatory Act.
23        (c)  Each dependent unmarried child under age  18  (under
24    age  22 if a full-time student) of a deceased participant, or
25    of a  deceased  annuitant  who  did  not  take  a  refund  or
26    additional   annuity   consisting  of  accumulated  survivors
27    insurance contributions, shall receive  a  survivors  annuity
28    equal  to  the  sum of (1) 20% of the final rate of earnings,
29    and (2) 10% of the final rate  of  earnings  divided  by  the
30    number  of children entitled to this benefit.  Payments shall
31    begin on the day following the participant's  or  annuitant's
32    death  and continue until the child marries, dies, or attains
33    age 18 (age 22 if a full-time student).  If the child  is  in
34    the  care of a surviving spouse who is eligible for survivors
 
                            -23-     LRB093 06100 LRD 06205 b
 1    insurance benefits, the child's benefit shall be paid to  the
 2    surviving spouse.
 3        Each   unmarried   child   over  age  18  of  a  deceased
 4    participant or of a deceased annuitant who had  a  survivor's
 5    insurance  beneficiary  at the time of his or her retirement,
 6    and who was dependent upon the participant  or  annuitant  by
 7    reason  of  a physical or mental disability which began prior
 8    to the date the child attained age 18 (age 22 if a  full-time
 9    student), shall receive a survivor's annuity equal to the sum
10    of  (1) 20% of the final rate of earnings, and (2) 10% of the
11    final rate of earnings divided  by  the  number  of  children
12    entitled  to survivors benefits.  Payments shall begin on the
13    day following the  participant's  or  annuitant's  death  and
14    continue  until  the  child  marries,  dies,  or is no longer
15    disabled.  If the child is in the care of a surviving  spouse
16    who is eligible for survivors insurance benefits, the child's
17    benefit  may  be  paid  to  the  surviving  spouse.   For the
18    purposes of  this  Section,  disability  means  inability  to
19    engage  in  any substantial gainful activity by reason of any
20    medically determinable physical or mental impairment that can
21    be expected to result in death or that has lasted or  can  be
22    expected  to  last  for  a  continuous period of at least one
23    year.
24        (d)  Each dependent parent of a deceased participant,  or
25    of  a  deceased  annuitant  who  did  not  take  a  refund or
26    additional  annuity  consisting  of   accumulated   survivors
27    insurance  contributions,  shall  receive a survivors annuity
28    equal to the sum of (1) 20% of final rate  of  earnings,  and
29    (2)  10%  of  final rate of earnings divided by the number of
30    parents who qualify for the benefit.   Payments  shall  begin
31    when  the  parent  reaches  age  55  or the day following the
32    participant's or annuitant's death, whichever is  later,  and
33    continue until the parent dies.  Remarriage of a parent prior
34    to  attainment  of age 55 shall disqualify the parent for the
 
                            -24-     LRB093 06100 LRD 06205 b
 1    receipt of a survivors annuity.
 2        (e)  In addition to the survivors annuity provided above,
 3    each survivors insurance beneficiary shall, upon death of the
 4    participant or annuitant,  receive  a  lump  sum  payment  of
 5    $1,000 divided by the number of such beneficiaries.
 6        (f)  The  changes  made  in  this  Section  by Public Act
 7    81-712  pertaining  to  survivors  annuities  in   cases   of
 8    remarriage  prior  to  age  55  shall apply to each survivors
 9    insurance beneficiary who  remarries  after  June  30,  1979,
10    regardless  of  the  date  that  the participant or annuitant
11    terminated his employment or died.
12        The change made to this Section by this amendatory Act of
13    the 91st General Assembly, pertaining to remarriage prior  to
14    age  55,  applies  without  regard  to  whether  the deceased
15    participant or annuitant was  in  service  on  or  after  the
16    effective  date  of  this  amendatory Act of the 91st General
17    Assembly.
18        (g)  On January 1, 1981, any person who was  receiving  a
19    survivors annuity on or before January 1, 1971 shall have the
20    survivors  annuity  then  being paid increased by 1% for each
21    full year which has elapsed from the date the annuity  began.
22    On  January  1,  1982, any survivor whose annuity began after
23    January 1, 1971, but before January 1, 1981, shall  have  the
24    survivor's  annuity  then being paid increased by 1% for each
25    year which has elapsed from the date the  survivor's  annuity
26    began. On January 1, 1987, any survivor who began receiving a
27    survivor's  annuity  on or before January 1, 1977, shall have
28    the monthly survivor's annuity increased by $1 for each  full
29    year  which has elapsed since the date the survivor's annuity
30    began.
31        (g-1)  On January  1,  2004,  every  survivor  who  began
32    receiving  a  survivor's annuity on or before January 1, 1991
33    shall have the monthly survivor's  annuity  increased  by  an
34    amount equal to 25¢ multiplied by the number of full years of
 
                            -25-     LRB093 06100 LRD 06205 b
 1    the  deceased's  creditable  service multiplied by the sum of
 2    (i) the number of full years  that  have  elapsed  since  the
 3    survivor's  annuity  began and (ii) the number of full years,
 4    if any, during  which  the  deceased  received  a  retirement
 5    annuity  under  this  Article.    Every  survivor  who begins
 6    receiving a survivor's annuity  after  January  1,  1991  and
 7    before  January  1,  2004  shall  have the monthly survivor's
 8    annuity increased on January 1, 2004  or  on  the  January  1
 9    occurring on or next following the seventh anniversary of the
10    commencement  of  the survivor's annuity, whichever is later,
11    by an amount equal to 25¢ multiplied by the  number  of  full
12    years  of the deceased's creditable service multiplied by the
13    sum of (i) the number of full years that have  elapsed  since
14    the  survivor's  annuity  began  and  (ii) the number of full
15    years,  if  any,  during  which  the  deceased   received   a
16    retirement  annuity  under  this Article.  The increase under
17    this subsection shall  be  included  in  the  calculation  of
18    increases   granted   simultaneously   or   thereafter  under
19    subsection (j).
20        (h)  If the  sum  of  the  lump  sum  and  total  monthly
21    survivor  benefits  payable under this Section upon the death
22    of a participant amounts to less than the sum  of  the  death
23    benefits  payable  under items (2) and (3) of Section 15-141,
24    the difference shall be paid in a lump sum to the beneficiary
25    of the participant who  is  living  on  the  date  that  this
26    additional amount becomes payable.
27        (i)  If  the  sum  of  the  lump  sum  and  total monthly
28    survivor benefits payable under this Section upon  the  death
29    of  an annuitant receiving a retirement annuity or disability
30    retirement annuity amounts to less  than  the  death  benefit
31    payable under Section 15-142, the difference shall be paid to
32    the  beneficiary  of  the annuitant who is living on the date
33    that this additional amount becomes payable.
34        (j)  Effective on the later of (1) January  1,  1990,  or
 
                            -26-     LRB093 06100 LRD 06205 b
 1    (2)  the  January  1  on  or next after the date on which the
 2    survivor annuity begins, if the deceased  member  died  while
 3    receiving  a  retirement  annuity,  or in all other cases the
 4    January 1 nearest the  first  anniversary  of  the  date  the
 5    survivor  annuity  payments  begin, every survivors insurance
 6    beneficiary shall receive an increase in his or  her  monthly
 7    survivors annuity of 3%.  On each January 1 after the initial
 8    increase, the monthly survivors annuity shall be increased by
 9    3%  of  the  total  survivors  annuity  provided  under  this
10    Article,   including  previous  increases  provided  by  this
11    subsection.  Such increases  shall  apply  to  the  survivors
12    insurance  beneficiaries  of  each participant and annuitant,
13    whether or not the employment status of  the  participant  or
14    annuitant  terminates  before  the  effective  date  of  this
15    amendatory  Act of 1990.  This subsection (j) also applies to
16    persons receiving  a  survivor  annuity  under  the  portable
17    benefit package.
18        (k)  If  the  Internal  Revenue Code of 1986, as amended,
19    requires that the survivors benefits be  payable  at  an  age
20    earlier  than  that  specified  in  this Section the benefits
21    shall  begin  at  the  earlier  age,  in  which  event,   the
22    survivor's  beneficiary shall be entitled only to that amount
23    which is equal to the actuarial equivalent  of  the  benefits
24    provided by this Section.
25        (l)  The  changes made to this Section and Section 15-131
26    by this amendatory Act of  1997,  relating  to  benefits  for
27    certain  unmarried  children who are full-time students under
28    age 22, apply without regard to whether the  deceased  member
29    was  in  service  on  or  after  the  effective  date of this
30    amendatory Act of 1997.  These changes do not  authorize  the
31    repayment  of  a refund or a re-election of benefits, and any
32    benefit or increase in benefits resulting from these  changes
33    is  not  payable  retroactively  for  any  period  before the
34    effective date of this amendatory Act of 1997.
 
                            -27-     LRB093 06100 LRD 06205 b
 1    (Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)

 2        (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
 3        Sec. 16-133.1.  Automatic annual increase in annuity.
 4        (a)  Each member with creditable service and retiring  on
 5    or  after August 26, 1969 is entitled to the automatic annual
 6    increases  in  annuity  provided  under  this  Section  while
 7    receiving  a  retirement  annuity  or  disability  retirement
 8    annuity from the system.
 9        An annuitant  shall  first  be  entitled  to  an  initial
10    increase  under  this Section on the January 1 next following
11    the first anniversary of retirement, or January 1 of the year
12    next following attainment of age 61, whichever is later.   At
13    such   time,   the  system  shall  pay  an  initial  increase
14    determined as follows:
15             (1)  1.5%  of  the  originally  granted   retirement
16        annuity  or  disability  retirement annuity multiplied by
17        the number of years elapsed, if any,  from  the  date  of
18        retirement until January 1, 1972, plus
19             (2)  2% of the originally granted annuity multiplied
20        by  the number of years elapsed, if any, from the date of
21        retirement or January 1, 1972, whichever is later,  until
22        January 1, 1978, plus
23             (3)  3% of the originally granted annuity multiplied
24        by   the  number  of  years  elapsed  from  the  date  of
25        retirement or January 1, 1978, whichever is later,  until
26        the effective date of the initial increase.
27    However,  the  initial  annual increase calculated under this
28    Section for the recipient of a disability retirement  annuity
29    granted  under Section 16-149.2 shall be reduced by an amount
30    equal to the total of all increases in that annuity  received
31    under  Section 16-149.5 (but not exceeding 100% of the amount
32    of  the  initial  increase  otherwise  provided  under   this
33    Section).
 
                            -28-     LRB093 06100 LRD 06205 b
 1        Following   the   initial   increase,   automatic  annual
 2    increases in annuity shall  be  payable  on  each  January  1
 3    thereafter  during  the lifetime of the annuitant, determined
 4    as a percentage of the originally granted retirement  annuity
 5    or  disability retirement annuity for increases granted prior
 6    to January 1, 1990, and calculated as  a  percentage  of  the
 7    total  amount  of annuity, including previous increases under
 8    this Section, for increases granted on or  after  January  1,
 9    1990, as follows:  1.5% for periods prior to January 1, 1972,
10    2%  for  periods after December 31, 1971 and prior to January
11    1, 1978, and 3% for periods after December 31, 1977.
12        (b)  The automatic annual increases in  annuity  provided
13    under  this  Section  shall not be applicable unless a member
14    has made contributions toward such  increases  for  a  period
15    equivalent  to  one  full  year  of creditable service.  If a
16    member contributes for service  performed  after  August  26,
17    1969   but  the  member  becomes  an  annuitant  before  such
18    contributions amount to one full year's  contributions  based
19    on  the  salary  at the date of retirement, he or she may pay
20    the necessary balance of the contributions to the system  and
21    be  eligible  for  the  automatic annual increases in annuity
22    provided under this Section.
23        (c)  Each member shall make contributions toward the cost
24    of the automatic annual  increases  in  annuity  as  provided
25    under Section 16-152.
26        (d)  An  annuitant  receiving  a  retirement  annuity  or
27    disability   retirement   annuity   on   July  1,  1969,  who
28    subsequently re-enters service as a teacher is  eligible  for
29    the automatic annual increases in annuity provided under this
30    Section  if he or she renders at least one year of creditable
31    service following the latest re-entry.
32        (e)  In addition to the  automatic  annual  increases  in
33    annuity  provided  under this Section, an annuitant who meets
34    the service requirements of this Section and whose retirement
 
                            -29-     LRB093 06100 LRD 06205 b
 1    annuity or disability retirement annuity began on  or  before
 2    January  1,  1971  shall  receive,  on  January  1,  1981, an
 3    increase in the annuity then being paid  of  one  dollar  per
 4    month  for  each  year  of creditable service.  On January 1,
 5    1982, an annuitant whose  retirement  annuity  or  disability
 6    retirement  annuity  began on or before January 1, 1977 shall
 7    receive an increase in the annuity then  being  paid  of  one
 8    dollar per month for each year of creditable service.
 9        On  January  1,  1987,  any  annuitant  whose  retirement
10    annuity  began on or before January 1, 1977, shall receive an
11    increase in the monthly retirement annuity equal  to  8¢  per
12    year  of  creditable  service  times the number of years that
13    have elapsed since the annuity began.
14        (f)  On  January  1,  2004,  every  annuitant  who  began
15    receiving a retirement annuity on or before January  1,  1991
16    shall  have  the  monthly  retirement annuity increased by an
17    amount equal to 25¢ multiplied by the number of full years of
18    creditable service multiplied by the  number  of  full  years
19    that  have  elapsed since the annuity began.  Every annuitant
20    who begins receiving a retirement annuity  after  January  1,
21    1991   and  before  July  1,  1998  shall  have  the  monthly
22    retirement annuity increased on January 1,  2004  or  on  the
23    January   1  occurring  on  or  next  following  the  seventh
24    anniversary of retirement, whichever is later, by  an  amount
25    equal  to  $1.75  multiplied  by  the number of full years of
26    creditable service  upon  which  the  retirement  annuity  is
27    based.   The increase under this subsection shall be included
28    in the calculation of  increases  granted  simultaneously  or
29    thereafter under subsection (a).
30    (Source: P.A. 91-927, eff. 12-14-00.)

31        (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
32        Sec. 16-143.1.  Increase in survivor benefits.
33        (a)  Beginning  January  1, 1990, each survivor's benefit
 
                            -30-     LRB093 06100 LRD 06205 b
 1    and each reversionary annuity payable  under  Section  16-136
 2    shall  be  increased  by  3%  of the currently payable amount
 3    thereof (1) on each January  1  occurring  on  or  after  the
 4    commencement  of  the  annuity  if  the deceased teacher died
 5    while  receiving  a  retirement  or   disability   retirement
 6    annuity,  or  (2) in other cases, on each January 1 occurring
 7    on or after the first anniversary  of  the  granting  of  the
 8    benefit,  without  regard to whether the deceased teacher was
 9    in service on or after the effective date of this  amendatory
10    Act  of  1991,  but  such  increases shall not accrue for any
11    period prior to January 1, 1990.
12        (b)  On  January  1,  1981,  any  beneficiary   who   was
13    receiving  a  survivor's monthly benefit on or before January
14    1, 1971, shall have the benefit then being paid increased  by
15    1%  for  each  full year elapsed from the date the survivor's
16    benefit began.  On January 1, 1982, any beneficiary who began
17    receiving a survivor's monthly benefit after January 1, 1971,
18    but before January 1, 1981 shall have the benefit then  being
19    paid  increased by 1% for each year elapsed from the date the
20    survivor's benefit began.
21        On  January  1,  1987,  any  beneficiary  whose   monthly
22    survivor's  benefit began on or before January 1, 1977, shall
23    have the monthly survivor's benefit increased by $1 for  each
24    full  year  which  has  elapsed since the date the survivor's
25    benefit began.
26        (c)  On  January  1,  2004,  every  survivor  who   began
27    receiving  a  survivor's benefit on or before January 1, 1991
28    shall have the monthly survivor's  benefit  increased  by  an
29    amount equal to 25¢ multiplied by the number of full years of
30    the  deceased's  creditable  service multiplied by the sum of
31    (i) the number of full years  that  have  elapsed  since  the
32    survivor's  benefit  began and (ii) the number of full years,
33    if any, during  which  the  deceased  received  a  retirement
34    annuity  under  this  Article.   Every  survivor  who  begins
 
                            -31-     LRB093 06100 LRD 06205 b
 1    receiving  a  survivor's  benefit  after  January 1, 1991 and
 2    before January 1, 2004  shall  have  the  monthly  survivor's
 3    benefit  increased  on  January  1,  2004 or on the January 1
 4    occurring on or next following the seventh anniversary of the
 5    commencement of the survivor's benefit, whichever  is  later,
 6    by  an  amount  equal to 25¢ multiplied by the number of full
 7    years of the deceased's creditable service multiplied by  the
 8    sum  of  (i) the number of full years that have elapsed since
 9    the survivor's benefit began and  (ii)  the  number  of  full
10    years,   if   any,  during  which  the  deceased  received  a
11    retirement annuity under this Article.   The  increase  under
12    this  subsection  shall  be  included  in  the calculation of
13    increases  granted   simultaneously   or   thereafter   under
14    subsection (a).
15    (Source: P.A. 86-273; 86-1488.)

16        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
17        Sec. 17-119.  Automatic annual increase in pension.
18        (a)  Each teacher retiring on or after September 1, 1959,
19    is  entitled  to  the  annual  increase  in  pension, defined
20    herein, while he is receiving a pension from the Fund.
21             1.  The  term  "base  pension"   means   a   service
22        retirement or disability retirement pension in the amount
23        fixed and payable at the date of retirement of a teacher.
24             2.  The  annual  increase in pension shall be at the
25        rate of 1 1/2% of base pension. This increase shall first
26        occur in January of the year  next  following  the  first
27        anniversary  of  retirement.  At such time the Fund shall
28        pay the pro rata part of the increase for the period from
29        the first anniversary date  to  the  date  of  the  first
30        increase  in pension. Beginning January 1, 1972, the rate
31        of annual increase in pension shall be  2%  of  the  base
32        pension.  Beginning  January  1, 1979, the rate of annual
33        increase in pension shall be  3%  of  the  base  pension.
 
                            -32-     LRB093 06100 LRD 06205 b
 1        Beginning January 1, 1990, all automatic annual increases
 2        payable  under  this  Section  shall  be  calculated as a
 3        percentage of the total pension payable at  the  time  of
 4        the  increase, including all increases previously granted
 5        under this Article, notwithstanding Section 17-157.
 6             3.  An increase in pension shall be granted only  if
 7        the  retired  teacher  is  age 60 or over. If the teacher
 8        attains age 60 after retirement, the increase in  pension
 9        shall  begin  in  January  of the year following the 61st
10        birthday. At such time the Fund also shall  pay  the  pro
11        rata  part  of the increase from the 61st birthday to the
12        date of first increase in pension.
13        (b)  In addition to other increases which may be provided
14    by this Section, on January  1,  1981  any  teacher  who  was
15    receiving  a  retirement pension on or before January 1, 1971
16    shall have his retirement pension then being  paid  increased
17    $1 per month for each year of creditable service.  On January
18    1,  1982,  any  teacher  whose retirement pension began on or
19    before January 1, 1977, shall  have  his  retirement  pension
20    then  being  paid  increased  $1  per  month for each year of
21    creditable service.
22        On January 1, 1987, any teacher whose retirement  pension
23    began  on  or  before January 1, 1977, shall have the monthly
24    retirement pension increased by an amount  equal  to  8¢  per
25    year  of  creditable  service  times the number of years that
26    have elapsed since the retirement pension began.
27        (c)  On  January  1,  2004,  every  pensioner  who  began
28    receiving a retirement pension on or before January  1,  1991
29    shall  have  the  monthly  retirement pension increased by an
30    amount equal to 25¢ multiplied by the number of full years of
31    creditable service multiplied by the  number  of  full  years
32    that  have  elapsed since the pension began.  Every pensioner
33    who begins receiving a retirement pension  after  January  1,
34    1991   and  before  July  1,  1998  shall  have  the  monthly
 
                            -33-     LRB093 06100 LRD 06205 b
 1    retirement pension increased on January 1,  2004  or  on  the
 2    January   1  occurring  on  or  next  following  the  seventh
 3    anniversary of retirement, whichever is later, by  an  amount
 4    equal  to  $1.75  multiplied  by  the number of full years of
 5    creditable service  upon  which  the  retirement  pension  is
 6    based.   The increase under this subsection shall be included
 7    in the calculation of  increases  granted  simultaneously  or
 8    thereafter  under  subsection  (a).   Section 17-157 does not
 9    apply to the increase provided under this subsection.
10    (Source: P.A. 90-566, eff. 1-2-98.)

11        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
12        Sec. 17-122. Survivor's and children's pensions - Amount.
13        (a)  Upon the death of a teacher  who  has  completed  at
14    least  1 1/2  years  of contributing service with either this
15    Fund or the  State  Universities  Retirement  System  or  the
16    Teachers'   Retirement  System  of  the  State  of  Illinois,
17    provided his death  occurred  while  (a)  in  active  service
18    covered  by  the  Fund  or  during  his  first  18  months of
19    continuous employment without a break in  service  under  any
20    other   participating  system  as  defined  in  the  Illinois
21    Retirement  Systems   Reciprocal   Act   except   the   State
22    Universities  Retirement  System and the Teachers' Retirement
23    System of the State of Illinois, (b) on a creditable leave of
24    absence, (c) on a noncreditable leave of absence of  no  more
25    than  one  year,  or  (d)  a  pension was deferred or pending
26    provided the teacher had  at  least  10  years  of  validated
27    service  credit,  or  upon the death of a pensioner otherwise
28    qualified  for  such  benefit,  the  surviving   spouse   and
29    unmarried minor children of the deceased teacher under age 18
30    shall  be  entitled  to pensions, under the conditions stated
31    hereinafter.  Such survivor's and children's  pensions  shall
32    be based on the average of the 4 highest consecutive years of
33    salary  in  the  last  10  years of service or on the average
 
                            -34-     LRB093 06100 LRD 06205 b
 1    salary for total service, if total service has been less than
 2    4 years, according to the following percentages:
 3             30% of average  salary  or  50%  of  the  retirement
 4        pension  earned  by  the  teacher,  whichever  is larger,
 5        subject to the prescribed maximum monthly payment, for  a
 6        surviving spouse alone on attainment of age 50;
 7             60%  of  average  salary  for a surviving spouse and
 8        eligible minor children of the deceased teacher.
 9        If no eligible spouse survives, or the  surviving  spouse
10    remarries,  or  the  parent  of  the children of the deceased
11    member is otherwise ineligible for a  survivor's  pension,  a
12    children's  pension  for eligible minor children under age 18
13    shall be paid to their parent or  legal  guardian  for  their
14    benefit according to the following percentages:
15             30% of average salary for one child;
16             60% of average salary for 2 or more children.
17        (b)  On  January  1,  1981, any survivor or child who was
18    receiving a survivor's or children's  pension  on  or  before
19    January  1,  1971,  shall  have  his survivor's or children's
20    pension then being paid increased by 1% for  each  full  year
21    which  has  elapsed  from  the  date  the  pension began.  On
22    January 1, 1982, any survivor or child  whose  pension  began
23    after January 1, 1971, but before January 1, 1981, shall have
24    his   survivor's   or  children's  pension  then  being  paid
25    increased 1% for each full year which has  elapsed  from  the
26    date  the pension began.  On January 1, 1987, any survivor or
27    child whose pension began on or before January 1, 1977, shall
28    have the monthly survivor's or children's  pension  increased
29    by  $1 for each full year which has elapsed since the pension
30    began.
31        (c)  On January 1, 2004,  every  survivor  or  child  who
32    began  receiving  a  survivor's  or  children's pension on or
33    before  January  1,  1991  shall  have  the  monthly  pension
34    increased by an amount equal to 25¢ multiplied by the  number
 
                            -35-     LRB093 06100 LRD 06205 b
 1    of full years of the deceased's creditable service multiplied
 2    by  the sum of (i) the number of full years that have elapsed
 3    since the survivor's or children's pension began and (ii) the
 4    number of full years,  if  any,  during  which  the  deceased
 5    received  a  retirement  pension  under  this Article.  Every
 6    survivor or  child  who  begins  receiving  a  survivor's  or
 7    children's  pension  after January 1, 1991 and before January
 8    1, 2004 shall have the monthly pension increased  on  January
 9    1,  2004  or  on the January 1 occurring on or next following
10    the seventh anniversary of the commencement of  the  pension,
11    whichever  is  later, by an amount equal to 25¢ multiplied by
12    the number of full years of the deceased's creditable service
13    multiplied by the sum of (i) the number of  full  years  that
14    have  elapsed since the survivor's annuity began and (ii) the
15    number of full years,  if  any,  during  which  the  deceased
16    received  a  retirement  pension  under  this  Article.   The
17    increase  under  this  subsection  shall  be  included in the
18    calculation of increases granted simultaneously or thereafter
19    under subsection (d).  Section 17-157 does not apply  to  the
20    increase provided under this subsection.
21        (d)  Beginning  January  1,  1990,  every  survivor's and
22    children's pension shall be increased (1) on each  January  1
23    occurring  on or after the commencement of the pension if the
24    deceased teacher died while receiving a  retirement  pension,
25    or  (2)  in  other  cases,  on each January 1 occurring on or
26    after the  first  anniversary  of  the  commencement  of  the
27    pension,  by  an  amount equal to 3% of the current amount of
28    the pension, including all increases previously granted under
29    this Article, notwithstanding Section 17-157.  Such increases
30    shall apply without regard to whether  the  deceased  teacher
31    was  in  service  on  or  after  the  effective  date of this
32    amendatory Act of 1991, but shall not accrue for  any  period
33    prior to January 1, 1990.
34        (e)  Subject   to  the  minimum  established  below,  the
 
                            -36-     LRB093 06100 LRD 06205 b
 1    maximum amount of pension for a surviving spouse alone or one
 2    minor child shall be $400 per month, and the maximum combined
 3    pensions for a surviving spouse and children of the  deceased
 4    teacher  shall  be  $600  per month, with individual pensions
 5    adjusted for all beneficiaries pro rata to conform with  this
 6    limitation.    If   proration   is  unnecessary  the  minimum
 7    survivor's and children's pensions shall be  $40  per  month.
 8    The  minimum  total survivor's and children's pension payable
 9    upon the death of a contributor  or  annuitant  which  occurs
10    after   December  31,  1986,  shall  be  50%  of  the  earned
11    retirement  pension  of  such   contributor   or   annuitant,
12    calculated  without  early retirement discount in the case of
13    death in service.
14        On death  after  retirement,  the  total  survivor's  and
15    children's  pensions  shall not exceed the monthly retirement
16    or  disability  pension  paid  to  the   deceased   retirant.
17    Survivor's  and children's benefits described in this Section
18    shall apply to all service and disability pensioners eligible
19    for a pension as of July 1, 1981.
20    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

21        Section 90.  The State Mandates Act is amended by  adding
22    Section 8.27 as follows:

23        (30 ILCS 805/8.27 new)
24        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
25    and 8 of this Act, no reimbursement by the State is  required
26    for  the  implementation  of  any  mandate  created  by  this
27    amendatory Act of the 93rd General Assembly.

28        Section  99.  Effective date.  This Act takes effect upon
29    becoming law.