Rep. Kevin A. McCarthy
Filed: 5/25/2010
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 3537 




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    AMENDMENT NO. ______. Amend Senate Bill 3537, AS AMENDED, 
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with reference to page and line numbers of House Amendment No. 
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1, on page 1, line 5, after "Sections", by inserting 
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"2-108.1,"; and
  
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on page 1, line 5, after "18-124,", by inserting "18-125,"; and
 
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on page 1, immediately below line 6, by inserting the 
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following:

 
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    "(40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
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    (Text of Section after amendment by P.A. 96-889)
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    Sec. 2-108.1. Highest salary for annuity purposes. 
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    (a) "Highest salary for annuity purposes" means whichever 
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of
the following is applicable to the participant:
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    For a participant who first becomes a participant of this 
15
System before August 10, 2009 (the effective date of Public Act 
 


 






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96-207): 
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        (1) For a participant who is a member of the General 
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    Assembly on his
or her last day of service: the highest 
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    salary that is prescribed by law,
on the participant's last 
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    day of service, for a member of the General
Assembly who is 
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    not an officer; plus, if the participant was elected or

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    appointed to serve as an officer of the General Assembly 
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    for 2 or more
years and has made contributions as required 
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    under subsection (d) of
Section 2-126, the highest 
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    additional amount of compensation prescribed by
law, at the 
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    time of the participant's service as an officer, for 
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    members of
the General Assembly who serve in that office.
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        (2) For a participant who holds one of the State 
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    executive offices
specified in Section 2-105 on his or her 
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    last day of service: the highest
salary prescribed by law 
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    for service in that office on the participant's
last day of 
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    service.
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        (3) For a participant who is Clerk or Assistant Clerk 
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    of the House of Representatives or Secretary or Assistant 
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    Secretary of the Senate
on his or her last day of service: 
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    the salary received for service in that
capacity on the 
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    last day of service, but not to exceed the highest salary

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    (including additional compensation for service as an 
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    officer) that is
prescribed by law on the participant's 
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    last day of service for the highest
paid officer of the 
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    General Assembly.
 


 






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        (4) For a participant who is a continuing participant 
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    under Section
2-117.1 on his or her last day of service: 
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    the salary received for service
in that capacity on the 
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    last day of service, but not to exceed the highest
salary 
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    (including additional compensation for service as an 
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    officer) that
is prescribed by law on the participant's 
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    last day of service for the
highest paid officer of the 
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    General Assembly.
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    For a participant who first becomes a participant of this 
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System on or after August 10, 2009 (the effective date of 
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Public Act 96-207) and before January 1, 2011 (the effective 
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date of Public Act 96-889) this amendatory Act of the 96th 
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General Assembly, the average monthly salary obtained by 
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dividing the total salary of the participant during the period 
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of: (1) the 48 consecutive months of service within the last 
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120 months of service in which the total compensation was the 
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highest, or (2) the total period of service, if less than 48 
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months, by the number of months of service in that period. 
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    For a participant who first becomes a participant of this 
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System on or after January 1, 2011 (the effective date of 
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Public Act 96-889) this amendatory Act of the 96th General 
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Assembly, the average monthly salary obtained by dividing the 
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total salary of the participant during the 96 consecutive 
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months of service within the last 120 months of service in 
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which the total compensation was the highest by the number of 
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months of service in that period; however, the highest salary 
 


 






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for annuity purposes may not exceed the Social Security Covered 
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Wage Base for 2010, as automatically increased
by the lesser of 
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3% or one-half of the annual increase in the consumer price 
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index-u
during the preceding 12-month calendar year and shall 
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automatically be increased or decreased, as applicable,
by a 
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percentage equal to the percentage change in the consumer price 
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index-u
during the preceding 12-month calendar year.  "Consumer 
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price index-u" means
the index published by the Bureau of Labor 
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Statistics of the United States
Department of Labor that 
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measures the average change in prices of goods and
services 
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purchased by all urban consumers, United States city average, 
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all
items, 1982-84 = 100.  The new amount resulting from each 
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annual adjustment
shall be determined by the Public Pension 
14
Division of the Department of Insurance and made available to 
15
the Board. 
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    (b) The earnings limitations of subsection (a) apply to 
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earnings
under any other participating system under the 
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Retirement Systems Reciprocal
Act that are considered in 
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calculating a proportional annuity under this
Article, except 
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in the case of a person who first became a member of this

21
System before August 22,
1994.
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    (c) In calculating the subsection (a) earnings limitation 
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to be applied to
earnings under any other participating system 
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under the Retirement Systems
Reciprocal Act for the purpose of 
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calculating a proportional annuity under this
Article, the 
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participant's last day of service shall be deemed to mean the 
 


 






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last
day of service in any participating system from which the 
2
person has applied
for a proportional annuity under the 
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Retirement Systems Reciprocal Act.
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(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11.)"; and
 
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on page 6, line 14, by replacing "then being paid" with "then 
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being paid"; and
 
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on page 6, line 16, after "less", by inserting ", of the 
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originally granted retirement annuity"; and
 
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on page 10, lines 14 and 15, by replacing "survivor's annuity 
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then being paid" with "originally granted survivor's annuity 
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then being paid"; and
 
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on page 12, immediately below line 18, by inserting the 
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following:
 
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    "(40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
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    (Text of Section after amendment by P.A. 96-889)
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    Sec. 18-125. Retirement annuity amount. 
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    (a) The annual retirement annuity for a participant who 
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terminated
service as a judge prior to July 1, 1971 shall be 
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based on the law in
effect at the time of termination of 
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service.
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    (b) Except as provided in subsection (b-5), effective July 
 


 






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1, 1971, the retirement annuity for any participant
in service 
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on or after such date shall be 3 1/2% of final average salary,

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as defined in this Section, for each of the first 10 years of 
4
service, and
5% of such final average salary for each year of 
5
service on excess of 10.
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    For purposes of this Section, final average salary for a 
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participant who first serves as a judge before August 10, 2009 
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(the effective date of Public Act 96-207) shall be:
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        (1) the average salary for the last 4 years of credited 
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    service as a
judge for a participant who terminates service 
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    before July 1, 1975.
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        (2) for a participant who terminates service after June 
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    30, 1975
and before July 1, 1982, the salary on the last 
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    day of employment as a judge.
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        (3) for any participant who terminates service after 
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    June 30, 1982 and
before January 1, 1990, the average 
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    salary for the final year of service as
a judge.
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        (4) for a participant who terminates service on or 
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    after January 1,
1990 but before the effective date of this 
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    amendatory Act of 1995, the
salary on the last day of 
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    employment as a judge.
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        (5) for a participant who terminates service on or 
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    after the effective
date of this amendatory Act of 1995, 
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    the salary on the last day of employment
as a judge, or the 
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    highest salary received by the participant for employment 
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    as
a judge in a position held by the participant for at 
 


 






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    least 4 consecutive years,
whichever is greater.
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    However, in the case of a participant who elects to 
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discontinue contributions
as provided in subdivision (a)(2) of 
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Section 18-133, the time of such
election shall be considered 
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the last day of employment in the determination
of final 
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average salary under this subsection.
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    For a participant who first serves as a judge on or after 
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August 10, 2009 (the effective date of Public Act 96-207) and 
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before January 1, 2011 (the effective date of Public Act 
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96-889) this amendatory Act of the 96th General Assembly, final 
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average salary shall be the average monthly salary obtained by 
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dividing the total salary of the participant during the period 
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of: (1) the 48 consecutive months of service within the last 
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120 months of service in which the total compensation was the 
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highest, or (2) the total period of service, if less than 48 
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months, by the number of months of service in that period. 
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    The maximum retirement annuity for any participant shall be 
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85% of final
average salary.
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    (b-5) Notwithstanding any other provision of this Article, 
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for a participant who first serves as a judge on or after 
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January 1, 2011 (the effective date of Public Act 96-889) this 
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amendatory Act of the 96th General Assembly, the annual

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retirement annuity is 3% of the
participant's final average 
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salary for each year of service.  The maximum retirement
annuity 
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payable shall be 60% of the participant's final average salary. 
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    For a participant who first serves as a judge on or after 
 


 






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January 1, 2011 (the effective date of Public Act 96-889) this 
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amendatory Act of the 96th General Assembly, final average 
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salary shall be the average monthly salary obtained by dividing 
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the total salary of the judge during the 96 consecutive months 
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of service within the last 120 months of service in which the 
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total salary was the highest by the number of months of service 
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in that period; however, the final average salary may not 
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exceed the Social Security Covered Wage Base for 2010, as 
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automatically increased
by the lesser of 3% or one-half of the 
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annual increase in the consumer price index-u
during the 
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preceding 12-month calendar year and shall automatically be 
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increased or decreased, as applicable,
by a percentage equal to 
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the percentage change in the consumer price index-u
during the 
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preceding 12-month calendar year.  "Consumer price index-u" 
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means
the index published by the Bureau of Labor Statistics of 
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the United States
Department of Labor that measures the average 
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change in prices of goods and
services purchased by all urban 
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consumers, United States city average, all
items, 1982-84 = 
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100.  The new amount resulting from each annual adjustment
shall 
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be determined by the Public Pension Division of the Department 
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of Insurance and made available to the Board. 
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    (c) The retirement annuity for a participant who retires 
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prior to age 60
with less than 28 years of service in the 
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System shall be reduced 1/2 of 1%
for each month that the 
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participant's age is under 60 years at the time the
annuity 
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commences.  However, for a participant who retires on or after 
 


 






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the
effective date of this amendatory Act of the 91st General 
2
Assembly, the
percentage reduction in retirement annuity 
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imposed under this subsection shall
be reduced by 5/12 of 1% 
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for every month of service in this System in excess of
20 
5
years, and therefore a participant with at least 26 years of 
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service in this
System may retire at age 55 without any 
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reduction in annuity.
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    The reduction in retirement annuity imposed by this 
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subsection shall not
apply in the case of retirement on account 
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of disability.
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    (d) Notwithstanding any other provision of this Article, 
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for a participant who first serves as a judge on or after the 
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effective date of this amendatory Act of the 96th General 
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Assembly and who is retiring after attaining age 62, the 
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retirement annuity shall be reduced by 1/2
of 1% for each month 
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that the participant's age is under age 67 at the time the 
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annuity commences. 
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(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11.)"; and

 
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on page 13, lines 13 and 14, by replacing "retirement annuity 
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then being paid" with "originally granted retirement annuity 
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then being paid"; and
  
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on page 16, line 26, by replacing "survivor's annuity" with 
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"originally granted survivor's annuity"; and
 
 


 






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on page 17, line 1, by replacing "then being paid" with "then 
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being paid".