093_SB0911

 
                                     LRB093 10894 EFG 11407 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 Sections 5-132 and 5-148 as follows:

 6        (40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
 7        Sec. 5-132. Minimum annuity.
 8        (A)  Any policeman who withdraws  on  or  after  July  8,
 9    1957,  or  any policeman transferred to the police service of
10    the city under the Exchange of  Functions  Act  of  1957  who
11    withdraws  on  or  after  July  17, 1959, after completing at
12    least 20 years of service, for  whom  the  annuity  otherwise
13    provided  in  this  Article  is less than that stated in this
14    Section, has a right to receive annuity as follows:
15             (a)  If he is age 55  or  more  on  withdrawal,  his
16        annuity  after  such  withdrawal, shall be equal to 2% of
17        the average salary for 4  consecutive  years  of  highest
18        salaries  within  the  last  10  years  of service before
19        withdrawal, for each year of service, together  with  1/6
20        of  1%  of such average salary for each complete month of
21        service of each fractional year, but not in excess of 75%
22        of the average annual salary.
23             (b)  If he is age 50 or more but less than age 55 on
24        withdrawal, his annuity shall  be  equal  to  2%  of  the
25        average salary for the 4 highest consecutive years of the
26        last  10  years  of  service  for  each  year of service,
27        together with 1/16 of 1% of such average salary for  each
28        month  of each fractional year of service, reduced by 1/2
29        of 1% for each month that he is less than age 55.
30             (c)  If he is less than age  50  on  withdrawal,  he
31        may,  upon  attainment of age 50 or over, become entitled
 
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 1        to the annuity provided in this Section or, he may,  upon
 2        application  before  age  50,  receive  a  refund  of the
 3        deductions from salary, plus interest at 1 1/2% per annum
 4        if he is entitled to refund under Section 5-163.
 5             (d)  In  lieu  of  the  annuity  provided   in   the
 6        foregoing  provisions of this Section 5-132 any policeman
 7        who withdraws from the service after December  31,  1973,
 8        after  having  attained  age 53 in the service with 23 or
 9        more years of service credit  shall  be  entitled  to  an
10        annuity  computed  as  follows if such annuity is greater
11        than that provided in the foregoing  paragraphs  of  this
12        Section  5-132:  An  annuity  equal to 50% of the average
13        salary for the 4 highest consecutive years of the last 10
14        years of service plus additional annuity equal to  2%  of
15        such average salary for each completed year of service or
16        fraction  thereof rendered after his attainment of age 53
17        and the completion of 23 years of service.
18             Any policeman who has completed 23 years of  service
19        prior  to  his  attainment  of  age 53 in the service and
20        continues in the service until his attainment of  age  53
21        shall  have added to his annuity, computed as provided in
22        the  immediately  preceding  paragraph,   an   additional
23        annuity  equal  to  1%  of  such  average salary for each
24        completed year of service or fraction thereof  in  excess
25        of 23 years up to age 53.
26             (e)  In   lieu   of  the  annuity  provided  in  the
27        foregoing provisions of this Section, any  policeman  who
28        withdraws  from the service either (i) after December 31,
29        1983 with at least 22 years of service credit and  having
30        attained  age  52  in the service, or (ii) after December
31        31, 1984 with at least 21 years  of  service  credit  and
32        having  attained  age  51  in the service, or (iii) after
33        December 31, 1985 with  at  least  20  years  of  service
34        credit and having attained age 50 in the service, or (iv)
 
                            -3-      LRB093 10894 EFG 11407 b
 1        after  December  31,  1990,  with  at  least  20 years of
 2        service credit regardless of age, shall be entitled to an
 3        annuity to begin not earlier than upon attainment of  age
 4        50  if under such age at withdrawal, computed as follows:
 5        an annuity equal to 50% of the average salary for  the  4
 6        highest  consecutive  years  of  the  last  10  years  of
 7        service,  plus  additional  annuity  equal  to 2% of such
 8        average salary for each  completed  year  of  service  or
 9        fraction  thereof  rendered  after  his completion of the
10        minimum number of years of service required for him to be
11        eligible under this subsection (e). However, the  annuity
12        provided  under this subsection (e) may not exceed 75% of
13        such average salary.
14             (f)  In  lieu  of  the  annuity  provided   in   the
15        foregoing  provisions  of  this  Section, a policeman who
16        withdraws from service after the effective date  of  this
17        amendatory Act of the 93rd General Assembly with at least
18        20  years  of  service  credit  may  elect  to receive an
19        annuity, to begin not earlier than upon attainment of age
20        50 if under that age  at  withdrawal,  equal  to  50%  of
21        average  salary  plus  2.5%  of  average  salary for each
22        completed year of service or fraction thereof  in  excess
23        of  20,  but  not  to  exceed a maximum of 80% of average
24        salary.
25        (B)  A policeman withdrawing  after  September  1,  1969,
26    may,  in  addition,  be  entitled to the benefits provided by
27    Section 5-167.1 of this Article if he so qualifies under that
28    Section.
29        (C)  If, on withdrawal, total service  is  less  than  20
30    years,  the  policeman  shall  not  be entitled to an annuity
31    under this Section but may receive an annuity under the other
32    provisions of this Article  or,  if  entitled  thereto  under
33    Section  5-163,  a  refund  of  the  deductions  from salary,
34    including, in the case of policemen transferred to the police
 
                            -4-      LRB093 10894 EFG 11407 b
 1    service of the city under the Exchange of  Functions  Act  of
 2    1957,  the  additional  contribution  paid on salary received
 3    from August 1, 1957, to July 17, 1959,  as  provided  in  the
 4    Park  Policemen's  Annuity  Act,  together with interest at 1
 5    1/2% per annum.
 6        Moneys  voluntarily  contributed  under  the  Policemen's
 7    Annuity and Benefit Fund Act of the Illinois Municipal  Code,
 8    or the Park Policemen's Annuity Act, shall be refunded to the
 9    contributing  policemen  who  were  in  service on January 1,
10    1954, or in the case of policemen transferred to  the  police
11    service  of  the  city under the Exchange of Functions Act of
12    1957, who were in service on July 17, 1959.
13        The age and service annuity formula in this Section shall
14    not apply to any policeman who, having retired before July 8,
15    1957, or before July 17, 1959, in the  case  of  a  policeman
16    transferred under the provisions of the Exchange of Functions
17    Act  of  1957, re-enters the police service after such dates,
18    whichever are applicable.
19        (D)  For the purpose of this Section and  Section  5-148,
20    "average   salary"   means  the  average  of  the  highest  4
21    consecutive years of salary  within  the  last  10  years  of
22    service.
23    (Source: P.A. 86-1488.)

24        (40 ILCS 5/5-148) (from Ch. 108 1/2, par. 5-148)
25        Sec.  5-148.  Maximum annuities.  No annuity in excess of
26    75% of the highest salary considered for annuity purposes  in
27    accordance  with  this  Article (80% of average salary in the
28    case  of  a  policeman  whose  annuity  is  calculated  under
29    subdivision (A)(f) of Section 5-132) shall be  payable  to  a
30    policeman, or to the widow of a policeman whose death results
31    from  injury  incurred  in the performance of an act of duty.
32    No amount of annuity in excess of $500  per  month  shall  be
33    payable  to the widow of a policeman whose death results from
 
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 1    any cause other than injury incurred in the performance of an
 2    act of duty, except as provided in Section 5-136.1.
 3        If, when a policeman's annuity is fixed, there is to  his
 4    credit,  for  such  annuity,  an  amount  in  excess  of that
 5    necessary to provide an annuity of 75% of his highest  salary
 6    (80%  of  average  salary  in  the  case of a policeman whose
 7    annuity is calculated under  subdivision  (A)(f)  of  Section
 8    5-132),  7/24  of  such  excess  shall  be  refunded  if  the
 9    policeman  is  a  future  entrant;  and  if  he  is a present
10    employee, there shall be refunded,  a  part  of  such  excess
11    amount  proportionately  equal  to  that  part  of the entire
12    amount to his credit for such annuity purposes, which the sum
13    that has resulted from salary deductions bears to such entire
14    amount.
15        Until January 1, 1986, if,  when  a  widow's  annuity  is
16    fixed,  there  is  to  the  policeman's  credit,  for widow's
17    annuity, an amount in excess of that necessary to provide  an
18    annuity  of  $500  per  month,  1/3  of  such excess shall be
19    refunded to the policeman if he is a future entrant; and,  if
20    he  is  a present employee, there shall be refunded a part of
21    such excess amount proportionately equal to that part of  the
22    entire  amount  to his credit for such annuity purposes which
23    the sum that has resulted from employee  contributions  bears
24    to such entire amount.  If the widow's annuity is fixed on or
25    after  January  1,  1986,  no  refund of excess contributions
26    shall be made under this paragraph.
27        Until January 1, 1986, if at the time of the death  of  a
28    policeman  resulting  from injury incurred in the performance
29    of an act of duty,  there  is  to  his  credit,  for  widow's
30    annuity,  an amount in excess of that necessary to provide an
31    annuity of 75% of his highest salary, or $500  per  month  if
32    death  results from any other cause, 1/3 of such excess shall
33    be refunded to his widow if he was a future entrant; and,  if
34    he  was  a  present  employee, there shall be refunded to his
 
                            -6-      LRB093 10894 EFG 11407 b
 1    widow a part of such excess amount proportionately  equal  to
 2    that part of the entire amount to his credit for such annuity
 3    purposes  which  the  sum  that  has resulted from employee's
 4    contributions bears to such entire amount.  If employee  dies
 5    in  service  on or after January 1, 1986, no refund of excess
 6    contributions shall be made under this paragraph.
 7        This amendatory Act of 1972 does not increase the  amount
 8    of  any  widow's  annuity which is fixed before the effective
 9    date of this amendatory Act of 1972.
10    (Source: P.A. 84-1104.)

11        Section 90.  The State Mandates Act is amended by  adding
12    Section 8.27 as follows:

13        (30 ILCS 805/8.27 new)
14        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
15    and 8 of this Act, no reimbursement by the State is  required
16    for  the  implementation  of  any  mandate  created  by  this
17    amendatory Act of the 93rd General Assembly.

18        Section  99.  Effective date.  This Act takes effect upon
19    becoming law.