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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Section 11-134.3 as follows:
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6 | (40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
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7 | Sec. 11-134.3. Automatic increases in annuity for certain | ||||||||||||||||||||||||
8 | heretofore retired
participants. A retired employee who (a) is | ||||||||||||||||||||||||
9 | receiving annuity based on a
service credit of 20 or more years | ||||||||||||||||||||||||
10 | regardless of age at retirement or based on
a service credit of | ||||||||||||||||||||||||
11 | 15 or more years with retirement at age 55 or over, and
(b) | ||||||||||||||||||||||||
12 | does not qualify for the automatic increases in annuity | ||||||||||||||||||||||||
13 | provided for in
Section 11-134.1 of this Article, and (c) | ||||||||||||||||||||||||
14 | elects to make a contribution to the
Fund at a time and manner | ||||||||||||||||||||||||
15 | prescribed by the Retirement Board, of a sum
equal to 1% of the | ||||||||||||||||||||||||
16 | amount of final monthly salary times the number of full
years | ||||||||||||||||||||||||
17 | of service on which the annuity was based in those cases where | ||||||||||||||||||||||||
18 | the
annuity was computed on the money purchase formula, and in | ||||||||||||||||||||||||
19 | those cases in
which the annuity was computed under the minimum | ||||||||||||||||||||||||
20 | annuity formula provisions
of this Article a sum equal to 1% of | ||||||||||||||||||||||||
21 | the average monthly salary on which
the annuity was based times | ||||||||||||||||||||||||
22 | such number of full years of service, shall
have his original | ||||||||||||||||||||||||
23 | fixed and payable monthly amount of annuity increased in
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1 | January of the year following the year in which he attains the | ||||||
2 | age of 65
years, if such age of 65 years is attained in the year | ||||||
3 | 1969 or later, by an
amount equal to 1 1/2%, and by an equal | ||||||
4 | additional 1 1/2% in January of
each year thereafter. Beginning | ||||||
5 | with January of the year 1972, such
increases shall be at the | ||||||
6 | rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning | ||||||
7 | January, 1984, such increases shall be at the rate of 3%.
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8 | Beginning in January of 1999, such increases shall be at the | ||||||
9 | rate of
3% of the currently payable monthly annuity, including | ||||||
10 | any increases previously
granted under this Article.
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11 | In those cases in which the retired employee receiving | ||||||
12 | annuity has
attained the age of 66 or more years in the year | ||||||
13 | 1969, he shall have such
annuity increased in January of the | ||||||
14 | year 1970 by an amount equal to 1 1/2%
multiplied by the number | ||||||
15 | equal to the number of months of January elapsing
from and | ||||||
16 | including January of the year immediately following the year he
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17 | attained the age of 65 years if retired at or prior to age 65, | ||||||
18 | or from and
including January of the year immediately following | ||||||
19 | the year of retirement
if retired at an age greater than 65 | ||||||
20 | years, to and including January of the
year 1970, and by an | ||||||
21 | equal additional 1 1/2% in January of each year
thereafter. | ||||||
22 | Beginning with January of the year 1972, such increases shall
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23 | be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. | ||||||
24 | Beginning
January, 1984, such increases shall be at the rate of | ||||||
25 | 3%.
Beginning in January of 1999, such increases shall be at | ||||||
26 | the rate of
3% of the currently payable monthly annuity, |
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1 | including any increases previously
granted under this Article.
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2 | To defray the annual cost of such increases, the annual | ||||||
3 | interest income
of the Fund, accruing from investments held by | ||||||
4 | the Fund, exclusive of gains
or losses on sales or exchanges of | ||||||
5 | assets during the year, over and above
4% a year, shall be used | ||||||
6 | to the extent necessary and available to finance
the cost of | ||||||
7 | such increases for the following year, and such amount shall be
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8 | transferred as of the end of each year, beginning with the year | ||||||
9 | 1969, to a
Fund account designated as the Supplementary Payment | ||||||
10 | Reserve from the
Investment and Interest Reserve set forth in | ||||||
11 | Sec. 11-210. The sums
contributed by annuitants as provided for | ||||||
12 | in this Section shall also be
placed in the aforesaid | ||||||
13 | Supplementary Payment Reserve and shall be applied
for and used | ||||||
14 | for the purposes of such Fund account, together with the
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15 | aforesaid interest.
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16 | In the event the monies in the Supplementary Payment | ||||||
17 | Reserve in any year
arising from: (1) the available interest | ||||||
18 | income as defined hereinbefore and
accruing in the preceding | ||||||
19 | year above 4% a year and (2) the contributions by
retired | ||||||
20 | persons, as set forth hereinbefore, are insufficient to make | ||||||
21 | the
total payments to all persons estimated to be entitled to | ||||||
22 | the annuity
increases specified hereinbefore, then (3) any | ||||||
23 | interest earnings over 4% a
year beginning with the year 1969 | ||||||
24 | which were not previously used to finance
such increases and | ||||||
25 | which were transferred to the Prior Service Annuity
Reserve may | ||||||
26 | be used to the extent necessary and available to provide
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1 | sufficient funds to finance such increases for the current | ||||||
2 | year, and such
sums shall be transferred from the Prior Service | ||||||
3 | Annuity Reserve.
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4 | In the event the total monies available in the | ||||||
5 | Supplementary Payment
Reserve from the preceding indicated | ||||||
6 | sources are insufficient to make the
total payments to all | ||||||
7 | persons entitled to such increases for the year, a
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8 | proportionate amount computed as the ratio of the monies | ||||||
9 | available to the
total of the total payments for that year | ||||||
10 | shall be paid to each person for
that year.
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11 | The Fund shall be obligated for the payment of the | ||||||
12 | increases in annuity
as provided for in this Section only to | ||||||
13 | the extent that the assets for such
purpose, as specified | ||||||
14 | herein, are available.
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15 | When all annuitants receiving post-retirement increases | ||||||
16 | under this Section have died, any balance remaining in the | ||||||
17 | Supplementary Payment Reserve must be transferred to the Prior | ||||||
18 | Service Reserve. | ||||||
19 | (Source: P.A. 90-766, eff. 8-14-98.)
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.
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