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 -2- LRB093 06100 LRD 06205 b 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 -3- LRB093 06100 LRD 06205 b 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 -5- LRB093 06100 LRD 06205 b 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.