093_SB1476eng SB1476 Engrossed LRB093 10980 EFG 11590 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 2-119.1 as follows: 6 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1) 7 Sec. 2-119.1. Automatic increase in retirement annuity. 8 (a) A participant who retires after June 30, 1967, and 9 who has not received an initial increase under this Section 10 before the effective date of this amendatory Act of 1991, 11 shall, in January or July next following the first 12 anniversary of retirement, whichever occurs first, and in the 13 same month of each year thereafter, but in no event prior to 14 age 60, have the amount of the originally granted retirement 15 annuity increased as follows: for each year through 1971, 1 16 1/2%; for each year from 1972 through 1979, 2%; and for 1980 17 and each year thereafter, 3%. Annuitants who have received 18 an initial increase under this subsection prior to the 19 effective date of this amendatory Act of 1991 shall continue 20 to receive their annual increases in the same month as the 21 initial increase. 22 (b) Beginning January 1, 1990, for eligible participants 23 who remain in service after attaining 20 years of creditable 24 service, the 3% increases provided under subsection (a) shall 25 begin to accrue on the January 1 next following the date upon 26 which the participant (1) attains age 55, or (2) attains 20 27 years of creditable service, whichever occurs later, and 28 shall continue to accrue while the participant remains in 29 service; such increases shall become payable on January 1 or 30 July 1, whichever occurs first, next following the first 31 anniversary of retirement. For any person who has service SB1476 Engrossed -2- LRB093 10980 EFG 11590 b 1 credit in the System for the entire period from January 15, 2 1969 through December 31, 1992, regardless of the date of 3 termination of service, the reference to age 55 in clause (1) 4 of this subsection (b) shall be deemed to mean age 50. 5 This subsection (b) does not apply to any person who 6 first becomes a member of the System after the effective date 7 of this amendatory Act of the 93rd General Assembly. 8 (c) The foregoing provisions relating to automatic 9 increases are not applicable to a participant who retires 10 before having made contributions (at the rate prescribed in 11 Section 2-126) for automatic increases for less than the 12 equivalent of one full year. However, in order to be 13 eligible for the automatic increases, such a participant may 14 make arrangements to pay to the system the amount required to 15 bring the total contributions for the automatic increase to 16 the equivalent of one year's contributions based upon his or 17 her last salary. 18 (d) A participant who terminated service prior to July 19 1, 1967, with at least 14 years of service is entitled to an 20 increase in retirement annuity beginning January, 1976, and 21 to additional increases in January of each year thereafter. 22 The initial increase shall be 1 1/2% of the originally 23 granted retirement annuity multiplied by the number of full 24 years that the annuitant was in receipt of such annuity 25 prior to January 1, 1972, plus 2% of the originally granted 26 retirement annuity for each year after that date. The 27 subsequent annual increases shall be at the rate of 2% of the 28 originally granted retirement annuity for each year through 29 1979 and at the rate of 3% for 1980 and thereafter. 30 (e) Beginning January 1, 1990, all automatic annual 31 increases payable under this Section shall be calculated as a 32 percentage of the total annuity payable at the time of the 33 increase, including previous increases granted under this 34 Article. SB1476 Engrossed -3- LRB093 10980 EFG 11590 b 1 (Source: P.A. 86-273; 87-794; 87-1265.) 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.