093_HB1581

 
                                     LRB093 07903 EFG 08093 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Section 14-114 as follows:

 6        (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
 7        Sec. 14-114.  Automatic increase in retirement annuity.
 8        (a)  Any person receiving a retirement annuity under this
 9    Article who retires having attained age 60,  or  who  retires
10    before age 60 having at least 35 years of creditable service,
11    or  who  retires on or after January 1, 2001 at an age which,
12    when added to the number of years of his  or  her  creditable
13    service,  equals  at  least  85,  shall,  on  January  1 next
14    following the first full year of retirement, have the  amount
15    of  the  then  fixed  and  payable monthly retirement annuity
16    increased 3%.  Any  person  receiving  a  retirement  annuity
17    under  this  Article  who retires before attainment of age 60
18    and with less than (i) 35  years  of  creditable  service  if
19    retirement  is  before January 1, 2001, or (ii) the number of
20    years of creditable service which, when added to the member's
21    age, would equal 85, if retirement is on or after January  1,
22    2001,  shall  have  the  amount  of  the  fixed  and  payable
23    retirement annuity increased by 3% on the January 1 occurring
24    on  or  next  following  (1) attainment of age 60, or (2) the
25    first anniversary  of  retirement,  whichever  occurs  later.
26    However,  for  persons who receive the alternative retirement
27    annuity under Section 14-110, references in  this  subsection
28    (a)  to  attainment  of  age  60  shall be deemed to refer to
29    attainment  of  age  55.   For  a  person   receiving   early
30    retirement incentives under Section 14-108.3 whose retirement
31    annuity  began after January 1, 1992 pursuant to an extension
 
                            -2-      LRB093 07903 EFG 08093 b
 1    granted under subsection  (e)  of  that  Section,  the  first
 2    anniversary  of  retirement  shall be deemed to be January 1,
 3    1993.  For a person who retires on or after June 28, 2001 and
 4    on or before October 1, 2001, and whose retirement annuity is
 5    calculated, in whole or in  part,  under  Section  14-110  or
 6    subsection   (g)   or   (h)  of  Section  14-108,  the  first
 7    anniversary of retirement shall be deemed to  be  January  1,
 8    2002.
 9        On  each  January  1  following  the  date of the initial
10    increase  under  this  subsection,  the  employee's   monthly
11    retirement annuity shall be increased by an additional 3%.
12        Beginning January 1, 1990, all automatic annual increases
13    payable   under   this  Section  shall  be  calculated  as  a
14    percentage of the total annuity payable at the  time  of  the
15    increase,  including  previous  increases  granted under this
16    Article.
17        (b)  The provisions of subsection  (a)  of  this  Section
18    shall be applicable to an employee only if the employee makes
19    the additional contributions required after December 31, 1969
20    for  the purpose of the automatic increases for not less than
21    the equivalent of one full year. If an  employee  becomes  an
22    annuitant  before his additional contributions equal one full
23    year's contributions based on  his  salary  at  the  date  of
24    retirement, the employee may pay the necessary balance of the
25    contributions   to  the  system,  without  interest,  and  be
26    eligible  for  the  increasing  annuity  authorized  by  this
27    Section.
28        (c)  The provisions of subsection  (a)  of  this  Section
29    shall not be applicable to any annuitant who is on retirement
30    on  December  31,  1969,  and  thereafter  returns  to  State
31    service,  unless the member has established at least one year
32    of  additional  creditable  service  following  reentry  into
33    service.
34        (d)  In addition to other increases which may be provided
 
                            -3-      LRB093 07903 EFG 08093 b
 1    by this Section, on January 1, 1981  any  annuitant  who  was
 2    receiving  a  retirement annuity on or before January 1, 1971
 3    shall have his retirement annuity then being  paid  increased
 4    $1 per month for each year of creditable service.  On January
 5    1,  1982,  any  annuitant  who  began  receiving a retirement
 6    annuity  on  or  before  January  1,  1977,  shall  have  his
 7    retirement annuity then being paid increased $1 per month for
 8    each year of creditable service.
 9        On January 1, 1987, any annuitant who began  receiving  a
10    retirement  annuity  on or before January 1, 1977, shall have
11    the monthly retirement annuity increased by an  amount  equal
12    to  8¢  per  year  of  creditable service times the number of
13    years that have elapsed since the annuity began.
14        On January 1, 2004, each annuitant who began receiving  a
15    retirement  annuity  on  or before January 1, 1998 shall have
16    the monthly retirement annuity increased by an  amount  equal
17    to  25  cents per year of creditable service times the number
18    of years that have elapsed since the annuity began.
19        Increases granted under this subsection shall be included
20    in the calculation of  increases  granted  simultaneously  or
21    thereafter under subsection (a).
22        (e)  Every person who receives the alternative retirement
23    annuity  under  Section 14-110 and who is eligible to receive
24    the 3% increase under subsection  (a)  on  January  1,  1986,
25    shall  also  receive  on  that  date  a  one-time increase in
26    retirement annuity equal to the difference  between  (1)  his
27    actual   retirement  annuity  on  that  date,  including  any
28    increases received under subsection (a), and (2)  the  amount
29    of  retirement annuity he would have received on that date if
30    the amendments to subsection (a) made by  Public  Act  84-162
31    had been in effect since the date of his retirement.
32    (Source: P.A.  91-927,  eff.  12-14-00;  92-14, eff. 6-28-01;
33    92-651, eff. 7-11-02.)
 
                            -4-      LRB093 07903 EFG 08093 b
 1        Section 99. Effective date.  This Act takes  effect  upon
 2    becoming law.