Section 1650.3220  Automatic Increase in Tier II Disability Benefits

a)         A Tier II member or annuitant receiving a disability benefit under the provisions of Section 16-149, 16-149.1 or 16-149.2 of the Code shall receive a 7% increase in the member's or annuitant's initial disability benefit on the January 1 following the fourth anniversary of the granting of the disability benefit.

b)         On each January 1 following the 7% increase, the member's or annuitant's Tier II disability benefit shall be increased by 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12-month period ending with the September preceding each November 1, whichever is less, of the initial disability benefit.

c)         If the annual unadjusted percentage change in the consumer price index-u preceding November 1 is zero or there is a decrease, the Tier II member's or annuitant's disability benefit shall not be increased.

d)         For persons receiving a disability retirement annuity under Section 16-149.2 of the Code, any prior annual increases shall cease as soon as the person is eligible to receive the annual increase provided in Section 1-160(e) of the Code.

(Source:  Added at 40 Ill. Reg. 14099, effective September 28, 2016)