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
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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
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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.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.