093_HB2144
LRB093 07682 EFG 07863 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 9-134 as follows:
6 (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
7 Sec. 9-134. Minimum annuity - Additional provisions.
8 (a) An employee who withdraws after July 1, 1957 at age
9 60 or more with 20 or more years of service, for whom the
10 amount of age and service and prior service annuity combined
11 is less than the amount stated in this Section from the date
12 of withdrawal, instead of all annuities otherwise provided in
13 this Article, is entitled to receive an annuity for life of
14 an amount equal to 1 2/3% for each year of service, of his
15 highest average annual salary for any 5 consecutive years
16 within the last 10 years of service immediately preceding the
17 date of withdrawal; provided that in the case of any employee
18 who withdraws on or after July 1, 1971, such employee age 60
19 or over with 20 or more years of service, or who withdraws on
20 or after January 1, 1982 and on or after attainment of age 65
21 with 10 or more years of service, shall instead receive an
22 annuity for life equal to 1.67% for each of the first 10
23 years of service; 1.90% for each of the next 10 years of
24 service; 2.10% for each year of service in excess of 20 but
25 not exceeding 30; and 2.30% for each year of service in
26 excess of 30, based on the highest average annual salary for
27 any 4 consecutive years within the last 10 years of service
28 immediately preceding the date of withdrawal.
29 An employee who withdraws after July 1, 1957, but prior
30 to January 1, 1988, with 20 or more years of service, before
31 age 60 is entitled to annuity, to begin not earlier than age
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1 55, if under such age at withdrawal, as computed in the last
2 preceding paragraph, reduced 1/2 of 1% for each full month or
3 fractional part thereof that his attained age when annuity is
4 to begin is less than 60 to the end that the total reduction
5 at age 55 shall be 30%, except that an employee retiring at
6 age 55 or over but less than age 60, having at least 35 years
7 of service, shall not be subject to the reduction in his
8 retirement annuity because of retirement below age 60.
9 An employee who withdraws on or after January 1, 1988,
10 with 20 or more years of service and before age 60, is
11 entitled to annuity as computed above, to begin not earlier
12 than age 50 if under such age at withdrawal, reduced 1/2 of
13 1% for each full month or fractional part thereof that his
14 attained age when annuity is to begin is less than 60, to the
15 end that the total reduction at age 50 shall be 60%, except
16 that an employee retiring at age 50 or over but less than age
17 60, having at least 30 years of service, shall not be subject
18 to the reduction in retirement annuity because of retirement
19 below age 60.
20 An employee who withdraws on or after January 1, 1992 but
21 before January 1, 1993, at age 60 or over with 5 or more
22 years of service, may elect, in lieu of any other employee
23 annuity provided in this Section, to receive an annuity for
24 life equal to 2.20% for each of the first 20 years of
25 service, and 2.40% for each year of service in excess of 20,
26 based on the highest average annual salary for any 4
27 consecutive years within the last 10 years of service
28 immediately preceding the date of withdrawal. An employee
29 who withdraws on or after January 1, 1992, but before January
30 1, 1993, on or after attainment of age 55 but before
31 attainment of age 60 with 5 or more years of service, is
32 entitled to elect such annuity, but the annuity shall be
33 reduced 0.25% for each full month or fractional part thereof
34 that his attained age when the annuity is to begin is less
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1 than age 60, to the end that the total reduction at age 55
2 shall be 15%, except that an employee retiring at age 55 or
3 over but less than age 60, having at least 30 years of
4 service, shall not be subject to the reduction in retirement
5 annuity because of retirement below age 60. This annuity
6 benefit formula shall only apply to those employees who are
7 age 55 or over prior to January 1, 1993, and who elect to
8 withdraw at age 55 or over on or after January 1, 1992 but
9 before January 1, 1993.
10 An employee who withdraws on or after July 1, 1996 but
11 before August 1, 1996, at age 55 or over with 8 or more years
12 of service, may elect, in lieu of any other employee annuity
13 provided in this Section, to receive an annuity for life
14 equal to 2.20% for each of the first 20 years of service, and
15 2.40% for each year of service in excess of 20, based on the
16 highest average annual salary for any 4 consecutive years
17 within the last 10 years of service immediately preceding the
18 date of withdrawal, but the annuity shall be reduced by 0.25%
19 for each full month or fractional part thereof that the
20 annuitant's attained age when the annuity is to begin is less
21 than age 60, unless the annuitant has at least 30 years of
22 service.
23 The maximum annuity under this paragraph (a) shall not
24 exceed 70% of highest average annual salary for any 5
25 consecutive years within the last 10 years of service in the
26 case of an employee who withdraws prior to July 1, 1971, and
27 75% of the highest average annual salary for any 4
28 consecutive years within the last 10 years of service
29 immediately preceding the date of withdrawal if withdrawal
30 takes place on or after July 1, 1971 and prior to January 1,
31 1988, and 80% of the highest average annual salary for any 4
32 consecutive years within the last 10 years of service
33 immediately preceding the date of withdrawal if withdrawal
34 takes place on or after January 1, 1988. Fifteen hundred
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1 dollars shall be considered the minimum amount of annual
2 salary for any year, and the maximum shall be his salary as
3 defined in this Article, except that for the years before
4 1957 and subsequent to 1952 the maximum annual salary to be
5 considered shall be $6,000, and for any year before the year
6 1953, $4,800.
7 (b) Any employee who withdraws on or after July 1, 1985
8 but prior to January 1, 1988, at age 60 or over with 10 or
9 more years of service, may elect in lieu of the benefit in
10 paragraph (a) to receive an annuity for life equal to 2.00%
11 for each year of service, based on the highest average annual
12 salary for any 4 consecutive years within the last 10 years
13 of service immediately preceding the date of withdrawal. An
14 employee who withdraws on or after July 1, 1985, but prior to
15 January 1, 1988, with 10 or more years of service, but before
16 age 60, is entitled to elect such annuity, to begin not
17 earlier than age 55, but the annuity shall be reduced 0.5%
18 for each full month or fractional part thereof that his
19 attained age when the annuity is to begin is less than 60, to
20 the end that the total reduction at age 55 shall be 30%;
21 except that an employee retiring at age 55 or over but less
22 than age 60, having at least 30 years of service, shall not
23 be subject to the reduction in retirement annuity because of
24 retirement below age 60.
25 An employee who withdraws on or after January 1, 1988, at
26 age 60 or over with 10 or more years of service, may elect,
27 in lieu of the benefit in paragraph (a), to receive an
28 annuity for life equal to 2.20% for each of the first 20
29 years of service, and 2.4% for each year of service in excess
30 of 20, based on the highest average annual salary for any 4
31 consecutive years within the last 10 years of service
32 immediately preceding the date of withdrawal. An employee who
33 withdraws on or after January 1, 1988, with 10 or more years
34 of service, but before age 60, is entitled to elect such
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1 annuity, to begin not earlier than age 50, but the annuity
2 shall be reduced 0.5% for each full month or fractional part
3 thereof that his attained age when the annuity is to begin is
4 less than 60, to the end that the total reduction at age 50
5 shall be 60%, except that an employee retiring at age 50 or
6 over but less than age 60, having at least 30 years of
7 service, shall not be subject to the reduction in retirement
8 annuity because of retirement below age 60.
9 An employee who withdraws on or after June 30, 2002 with
10 10 or more years of service may elect, in lieu of any other
11 retirement annuity provided under this Article, to receive an
12 annuity for life, beginning no earlier than upon attainment
13 of age 50, equal to 2.40% of his or her highest average
14 annual salary for any 4 consecutive years within the last 10
15 years of service immediately preceding withdrawal, for each
16 year of service. If the employee has less than 30 years of
17 service, the annuity shall be reduced by 0.5% for each full
18 month or remaining fraction thereof that the employee's
19 attained age when the annuity is to begin is less than 60.
20 The maximum annuity under this paragraph (b) shall not
21 exceed 75% of the highest average annual salary for any 4
22 consecutive years within the last 10 years of service
23 immediately preceding the date of withdrawal if withdrawal
24 occurs prior to January 1, 1988, or 80% of the highest
25 average annual salary for any 4 consecutive years within the
26 last 10 years of service immediately preceding the date of
27 withdrawal if withdrawal takes place on or after January 1,
28 1988.
29 The provisions of this paragraph (b) do not apply to any
30 former County employee receiving an annuity from the fund,
31 who re-enters service as a County employee, unless he renders
32 at least 3 years of additional service after the date of
33 re-entry.
34 (b-5) A deputy sheriff or correctional officer who
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1 retires on or after July 1, 2003 with 20 or more years of
2 service may elect, in lieu of any other retirement annuity
3 provided under this Article, to receive an annuity for life,
4 beginning no earlier than upon the attainment of age 50,
5 equal to 2.4% for each year of service of the highest average
6 annual salary for any 4 consecutive years within the last 10
7 years of service. Any such deputy sheriff or correctional
8 officer who elects to retire under this provision shall not
9 be eligible for added benefits as provided under Section
10 9-179.3.
11 (c) For an employee receiving disability benefit, the
12 salary for annuity purposes under paragraph (a) or (b) of
13 this Section shall, for all periods of disability benefit
14 subsequent to the year 1956, be the amount on which his
15 disability benefit was based.
16 (d) A county employee with 20 or more years of service,
17 whose entire disability benefit credit period expires before
18 attainment of age 50 (age 55 if expiration occurs before
19 January 1, 1988), while still disabled for service is
20 entitled upon withdrawal to the larger of:
21 (1) The minimum annuity provided above, assuming
22 that he is then age 50 (age 55 if expiration occurs
23 before January 1, 1988), and reducing such annuity to its
24 actuarial equivalent at his attained age on such date, or
25 (2) the annuity provided from his age and service
26 and prior service annuity credits.
27 (e) The minimum annuity provisions above do not apply to
28 any former county employee receiving an annuity from the
29 fund, who re-enters service as a county employee, unless he
30 renders at least 3 years of additional service after the date
31 of re-entry.
32 (f) Any employee in service on July 1, 1947, or who
33 enters service thereafter before attaining age 65 and
34 withdraws after age 65 with less than 10 years of service for
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1 whom the annuity has been fixed under the foregoing Sections
2 of this Article, shall, instead of the annuity so fixed,
3 receive an annuity as follows:
4 Such amount as he could have received had the accumulated
5 amounts for annuity been improved with interest at the
6 effective rate to the date of withdrawal, or to attainment of
7 age 70, whichever is earlier, and had the county contributed
8 to such earlier date for age and service annuity the amount
9 that it would have contributed had he been under age 65,
10 after the date his annuity was fixed in accordance with this
11 Article, and assuming his annuity were computed from such
12 accumulations as of his age on such earlier date. However
13 those employees who before July 1, 1953, made additional
14 contributions in accordance with this Article, the annuity so
15 computed under this paragraph shall not exceed the annuity
16 which would be payable under the other provisions of this
17 Section if the employee concerned was credited with 20 years
18 of service and would qualify for annuity thereunder.
19 (g) Instead of the annuity provided in this or any other
20 Section of this Article, an employee having attained age 65
21 with at least 15 years of service may elect to receive a
22 minimum annual annuity for life equal to 1% of the highest
23 average annual salary for any 4 consecutive years within the
24 last 10 years of service immediately preceding retirement for
25 each year of service, plus the sum of $25 for each year of
26 service provided that no such minimum annual annuity may be
27 greater than 60% of such highest average annual salary.
28 (h) The annuity is payable in equal monthly
29 installments.
30 (i) If, by operation of law, a function of a
31 governmental unit, as defined by Section 20-107 of this Code,
32 is transferred in whole or in part to the county in which
33 this Article 9 is created as set forth in Section 9-101, and
34 employees of the governmental unit are transferred as a class
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1 to such county, the earnings credits in the retirement system
2 covering the governmental unit which have been validated
3 under Section 20-109 of this Code shall be considered in
4 determining the highest average annual salary for purposes of
5 this Section 9-134.
6 (j) The annuity being paid to an employee annuitant on
7 July 1, 1988, shall be increased on that date by 1% for each
8 full year that has elapsed from the date the annuity began.
9 (k) Notwithstanding anything to the contrary in this
10 Article 9, Section 20-131 shall not apply to an employee who
11 withdraws on or after January 1, 1988, but prior to attaining
12 age 55. Therefore, no employee shall be entitled to elect to
13 have the alternative formula previously set forth in Section
14 20-122 prior to the amendatory Act of 1975 apply to any
15 annuity, the payment of which commenced after January 1,
16 1988, but prior to such employee's attainment of age 55.
17 (Source: P.A. 92-599, eff. 6-28-02.)
18 Section 90. The State Mandates Act is amended by adding
19 Section 8.27 as follows:
20 (30 ILCS 805/8.27 new)
21 Sec. 8.27. Exempt mandate. Notwithstanding Sections 6
22 and 8 of this Act, no reimbursement by the State is required
23 for the implementation of any mandate created by this
24 amendatory Act of the 93rd General Assembly.
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.