```
```

```
```

| |||||||||||||||||||||||||

| |||||||||||||||||||||||||

```
``` | |||||||||||||||||||||||||

| |||||||||||||||||||||||||

```
``` | |||||||||||||||||||||||||

1 | ` ` `AN ACT concerning 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 changing ` | ||||||||||||||||||||||||

5 | `Section 15-136 as follows:` ```
``` ```
``` | ||||||||||||||||||||||||

6 | ` ` `(40 ILCS 5/15-136)` ` ` `(from Ch. 108 1/2, par. 15-136)` ```
``` ```
``` | ||||||||||||||||||||||||

7 | ` ` `(Text of Section before amendment by P.A. 98-599` `)` ```
``` | ||||||||||||||||||||||||

8 | ` ` `Sec. 15-136. ` `Retirement annuities - Amount. ` `The provisions ` | ||||||||||||||||||||||||

9 | ```
of this
Section 15-136 apply only to those participants who are
``` | ||||||||||||||||||||||||

10 | ```
participating in the
traditional benefit package or the
``` | ||||||||||||||||||||||||

11 | ```
portable benefit package and do not
apply to participants who
``` | ||||||||||||||||||||||||

12 | `are participating in the self-managed plan.` ```
``` | ||||||||||||||||||||||||

13 | ` ` `(a) The amount of a participant's retirement annuity, ` | ||||||||||||||||||||||||

14 | ```
expressed in the form
of a single-life annuity, shall be
``` | ||||||||||||||||||||||||

15 | ```
determined by whichever of the following
rules is applicable
``` | ||||||||||||||||||||||||

16 | `and provides the largest annuity:` ```
``` | ||||||||||||||||||||||||

17 | ` ` `Rule 1: The retirement annuity shall be 1.67% of final rate ` | ||||||||||||||||||||||||

18 | ```
of earnings for
each of the first 10 years of service, 1.90%
``` | ||||||||||||||||||||||||

19 | ```
for each of the next 10 years of
service, 2.10% for each year
``` | ||||||||||||||||||||||||

20 | ```
of service in excess of 20 but not exceeding 30,
and 2.30% for
``` | ||||||||||||||||||||||||

21 | ```
each year in excess of 30; or for persons who retire on or
``` | ||||||||||||||||||||||||

22 | `after January 1, 1998, 2.2% of the final rate of earnings for ` | ||||||||||||||||||||||||

23 | ```
each year of
service.
``` ```
``` |

| |||||||

| |||||||

1 | ` ` `Rule 2: The retirement annuity shall be the sum of the ` | ||||||

2 | ```
following,
determined from amounts credited to the participant
``` | ||||||

3 | ```
in accordance with the
actuarial tables and the effective rate
``` | ||||||

4 | ```
of interest in effect at the
time the retirement annuity
``` | ||||||

5 | `begins:` ```
``` ```
``` | ||||||

6 | ` ` ` ` `(i) the normal annuity which can be provided on an ` | ||||||

7 | ```
actuarially
equivalent basis, by the accumulated normal
``` | ||||||

8 | ```
contributions as of
the date the annuity begins;
``` ```
``` ```
``` | ||||||

9 | ` ` ` ` `(ii) an annuity from employer contributions of an ` | ||||||

10 | ```
amount equal to that
which can be provided on an
``` | ||||||

11 | ```
actuarially equivalent basis from the accumulated
normal
``` | ||||||

12 | `contributions made by the participant under Section ` | ||||||

13 | ```
15-113.6 and Section
15-113.7 plus 1.4 times all other
``` | ||||||

14 | ```
accumulated normal contributions made by
the participant;
``` | ||||||

15 | `and` ```
``` ```
``` | ||||||

16 | ` ` ` ` `(iii) the annuity that can be provided on an ` | ||||||

17 | ```
actuarially equivalent basis
from the entire contribution
``` | ||||||

18 | `made by the participant under Section 15-113.3.` ```
``` | ||||||

19 | ` ` `With respect to a police officer or firefighter who retires ` | ||||||

20 | ```
on or after
August 14, 1998, the accumulated normal
``` | ||||||

21 | ```
contributions taken into account under
clauses (i) and (ii) of
``` | ||||||

22 | ```
this Rule 2 shall include the additional normal
contributions
``` | ||||||

23 | ```
made by the police officer or firefighter under Section
``` | ||||||

24 | `15-157(a).` ```
``` | ||||||

25 | ` ` `The amount of a retirement annuity calculated under this ` | ||||||

26 | ```
Rule 2 shall
be computed solely on the basis of the
``` |

| |||||||

| |||||||

1 | ```
participant's accumulated normal
contributions, as specified
``` | ||||||

2 | ```
in this Rule and defined in Section 15-116.
Neither an employee
``` | ||||||

3 | ```
or employer contribution for early retirement under
Section
``` | ||||||

4 | `15-136.2 nor any other employer contribution shall be used in ` | ||||||

5 | ```
the
calculation of the amount of a retirement annuity under
``` | ||||||

6 | `this Rule 2.` ```
``` | ||||||

7 | ` ` `This amendatory Act of the 91st General Assembly is a ` | ||||||

8 | ```
clarification of
existing law and applies to every participant
``` | ||||||

9 | ```
and annuitant without regard to
whether status as an employee
``` | ||||||

10 | ```
terminates before the effective date of this
amendatory Act.
``` ```
``` | ||||||

11 | ` ` `This Rule 2 does not apply to a person who first becomes an ` | ||||||

12 | ```
employee under this Article on or after July 1, 2005.
``` | ||||||

13 | ` ` `Rule 3: The retirement annuity of a participant who is ` | ||||||

14 | ```
employed
at least one-half time during the period on which his
``` | ||||||

15 | ```
or her final rate of
earnings is based, shall be equal to the
``` | ||||||

16 | ```
participant's years of service
not to exceed 30, multiplied by
``` | ||||||

17 | ```
(1) $96 if the participant's final rate
of earnings is less
``` | ||||||

18 | ```
than $3,500, (2) $108 if the final rate of earnings is
at least
``` | ||||||

19 | `$3,500 but less than $4,500, (3) $120 if the final rate of ` | ||||||

20 | ```
earnings
is at least $4,500 but less than $5,500, (4) $132 if
``` | ||||||

21 | ```
the final rate
of earnings is at least $5,500 but less than
``` | ||||||

22 | ```
$6,500, (5)
$144 if the final rate of earnings is at least
``` | ||||||

23 | ```
$6,500 but less than
$7,500, (6) $156 if the final rate of
``` | ||||||

24 | ```
earnings is at least $7,500 but less
than $8,500, (7) $168 if
``` | ||||||

25 | ```
the final rate of earnings is at least $8,500 but
less than
``` | ||||||

26 | ```
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
``` |

| |||||||

| |||||||

1 | `more, except that the annuity for those persons having made an ` | ||||||

2 | ```
election under
Section 15-154(a-1) shall be calculated and
``` | ||||||

3 | ```
payable under the portable
retirement benefit program pursuant
``` | ||||||

4 | `to the provisions of Section 15-136.4.` ```
``` | ||||||

5 | ` ` `Rule 4: A participant who is at least age 50 and has 25 or ` | ||||||

6 | ```
more years of
service as a police officer or firefighter, and a
``` | ||||||

7 | ```
participant who is age 55 or
over and has at least 20 but less
``` | ||||||

8 | ```
than 25 years of service as a police officer
or firefighter,
``` | ||||||

9 | ```
shall be entitled to a retirement annuity of 2 1/4% of the
``` | ||||||

10 | `final rate of earnings for each of the first 10 years of ` | ||||||

11 | ```
service as a police
officer or firefighter, 2 1/2% for each of
``` | ||||||

12 | ```
the next 10 years of service as a
police officer or
``` | ||||||

13 | ```
firefighter, and 2 3/4% for each year of service as a police
``` | ||||||

14 | `officer or firefighter in excess of 20. The retirement annuity ` | ||||||

15 | ```
for all other
service shall be computed under Rule 1. A Tier 2
``` | ||||||

16 | `member is eligible for a retirement annuity calculated under ` | ||||||

17 | `Rule 4 only if that Tier 2 member meets the service ` | ||||||

18 | `requirements for that benefit calculation as prescribed under ` | ||||||

19 | `this Rule 4 in addition to the applicable age requirement under ` | ||||||

20 | `subsection (a-5) of Section 15-135.` ```
``` | ||||||

21 | ` ` `For purposes of this Rule 4, a participant's service as a ` | ||||||

22 | ```
firefighter
shall also include the following:
``` ```
``` ```
``` | ||||||

23 | ` ` ` ` `(i) service that is performed while the person is an ` | ||||||

24 | ```
employee under
subsection (h) of Section 15-107; and
``` ```
``` ```
``` | ||||||

25 | ` ` ` ` `(ii) in the case of an individual who was a ` | ||||||

26 | ```
participating employee
employed in the fire department of
``` |

| |||||||

| |||||||

1 | ```
the University of Illinois's
Champaign-Urbana campus
``` | ||||||

2 | ```
immediately prior to the elimination of that fire
``` | ||||||

3 | `department and who immediately after the elimination of ` | ||||||

4 | ```
that fire department
transferred to another job with the
``` | ||||||

5 | ```
University of Illinois, service performed
as an employee of
``` | ||||||

6 | ```
the University of Illinois in a position other than police
``` | ||||||

7 | `officer or firefighter, from the date of that transfer ` | ||||||

8 | ```
until the employee's
next termination of service with the
``` | ||||||

9 | `University of Illinois.` ```
``` | ||||||

10 | ` ` `(b) For a Tier 1 member, the retirement annuity provided ` | ||||||

11 | ```
under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each
``` | ||||||

12 | ```
month the participant is under age 60 at the
time of
``` | ||||||

13 | `retirement. However, this reduction shall not apply in the ` | ||||||

14 | ```
following
cases:
``` ```
``` ```
``` | ||||||

15 | ` ` ` ` `(1) For a disabled participant whose disability ` | ||||||

16 | ```
benefits have been
discontinued because he or she has
``` | ||||||

17 | ```
exhausted eligibility for disability
benefits under clause
``` | ||||||

18 | `(6) of Section 15-152;` ```
``` ```
``` | ||||||

19 | ` ` ` ` `(2) For a participant who has at least the number of ` | ||||||

20 | ```
years of service
required to retire at any age under
``` | ||||||

21 | `subsection (a) of Section 15-135; or` ```
``` ```
``` | ||||||

22 | ` ` ` ` `(3) For that portion of a retirement annuity which has ` | ||||||

23 | ```
been provided on
account of service of the participant
``` | ||||||

24 | ```
during periods when he or she performed
the duties of a
``` | ||||||

25 | `police officer or firefighter, if these duties were ` | ||||||

26 | ```
performed
for at least 5 years immediately preceding the
``` |

| |||||||

| |||||||

1 | ```
date the retirement annuity
is to begin.
``` ```
``` | ||||||

2 | ` ` `(b-5) The retirement annuity of a Tier 2 member who is ` | ||||||

3 | `retiring after attaining age 62 with at least 10 years of ` | ||||||

4 | `service credit shall be reduced by 1/2 of 1% for each full ` | ||||||

5 | `month that the member's age is under age 67. ` | ||||||

6 | ` ` `(c) The maximum retirement annuity provided under Rules 1, ` | ||||||

7 | ```
2, 4,
and 5
shall be the lesser of (1) the annual limit of
``` | ||||||

8 | ```
benefits as specified in
Section 415 of the Internal Revenue
``` | ||||||

9 | ```
Code of 1986, as such Section may be
amended from time to time
``` | ||||||

10 | ```
and as such benefit limits shall be adjusted by
the
``` | ||||||

11 | ```
Commissioner of Internal Revenue, and (2) 80% of final rate of
``` | ||||||

12 | `earnings.` ```
``` | ||||||

13 | ` ` `(d) A Tier 1 member whose status as an employee terminates ` | ||||||

14 | ```
after August 14,
1969 shall receive automatic increases in his
``` | ||||||

15 | ```
or her retirement annuity as
follows:
``` ```
``` | ||||||

16 | ` ` `Effective January 1 immediately following the date the ` | ||||||

17 | ```
retirement annuity
begins, the annuitant shall receive an
``` | ||||||

18 | ```
increase in his or her monthly
retirement annuity of 0.125% of
``` | ||||||

19 | ```
the monthly retirement annuity provided under
Rule 1, Rule 2,
``` | ||||||

20 | ```
Rule 3, or Rule 4 contained in this
Section, multiplied by
the
``` | ||||||

21 | `number of full months which elapsed from the date the ` | ||||||

22 | ```
retirement annuity
payments began to January 1, 1972, plus
``` | ||||||

23 | ```
0.1667% of such annuity, multiplied by
the number of full
``` | ||||||

24 | ```
months which elapsed from January 1, 1972, or the date the
``` | ||||||

25 | `retirement annuity payments began, whichever is later, to ` | ||||||

26 | ```
January 1, 1978, plus
0.25% of such annuity multiplied by the
``` |

| |||||||

| |||||||

1 | ```
number of full months which elapsed
from January 1, 1978, or
``` | ||||||

2 | ```
the date the retirement annuity payments began,
whichever is
``` | ||||||

3 | `later, to the effective date of the increase.` ```
``` | ||||||

4 | ` ` `The annuitant shall receive an increase in his or her ` | ||||||

5 | ```
monthly retirement
annuity on each January 1 thereafter during
``` | ||||||

6 | ```
the annuitant's life of 3% of
the monthly annuity provided
``` | ||||||

7 | ```
under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this
``` | ||||||

8 | `Section. The change made under this subsection by P.A. 81-970 ` | ||||||

9 | ```
is
effective January 1, 1980 and applies to each annuitant
``` | ||||||

10 | ```
whose status as
an employee terminates before or after that
``` | ||||||

11 | `date.` ```
``` | ||||||

12 | ` ` `Beginning January 1, 1990, all automatic annual increases ` | ||||||

13 | ```
payable under
this Section shall be calculated as a percentage
``` | ||||||

14 | ```
of the total annuity
payable at the time of the increase,
``` | ||||||

15 | ```
including all increases previously
granted under this Article.
``` ```
``` | ||||||

16 | ` ` `The change made in this subsection by P.A. 85-1008 is ` | ||||||

17 | ```
effective January
26, 1988, and is applicable without regard to
``` | ||||||

18 | ```
whether status as an employee
terminated before that date.
``` ```
``` | ||||||

19 | ` ` `(d-5) A retirement annuity of a Tier 2 member shall receive ` | ||||||

20 | `annual increases on the January 1 occurring either on or after ` | ||||||

21 | `the attainment of age 67 or the first anniversary of the ` | ||||||

22 | `annuity start date, whichever is later. Each annual increase ` | ||||||

23 | `shall be calculated at 3% or one half the annual unadjusted ` | ||||||

24 | `percentage increase (but not less than zero) in the consumer ` | ||||||

25 | `price index-u for the 12 months ending with the September ` | ||||||

26 | `preceding each November 1, whichever is less, of the originally ` |

| |||||||

| |||||||

1 | `granted retirement annuity. If the annual unadjusted ` | ||||||

2 | `percentage change in the consumer price index-u for the 12 ` | ||||||

3 | `months ending with the September preceding each November 1 is ` | ||||||

4 | `zero or there is a decrease, then the annuity shall not be ` | ||||||

5 | `increased. ` | ||||||

6 | ` ` `(e) If, on January 1, 1987, or the date the retirement ` | ||||||

7 | ```
annuity payment
period begins, whichever is later, the sum of
``` | ||||||

8 | ```
the retirement annuity
provided under Rule 1 or Rule 2 of this
``` | ||||||

9 | ```
Section
and the automatic annual increases provided under the
``` | ||||||

10 | ```
preceding subsection
or Section 15-136.1, amounts to less than
``` | ||||||

11 | ```
the retirement
annuity which would be provided by Rule 3, the
``` | ||||||

12 | ```
retirement
annuity shall be increased as of January 1, 1987, or
``` | ||||||

13 | ```
the date the
retirement annuity payment period begins,
``` | ||||||

14 | ```
whichever is later, to the amount
which would be provided by
``` | ||||||

15 | ```
Rule 3 of this Section. Such increased
amount shall be
``` | ||||||

16 | ```
considered as the retirement annuity in determining
benefits
``` | ||||||

17 | ```
provided under other Sections of this Article. This paragraph
``` | ||||||

18 | `applies without regard to whether status as an employee ` | ||||||

19 | ```
terminated before the
effective date of this amendatory Act of
``` | ||||||

20 | ```
1987, provided that the annuitant was
employed at least
``` | ||||||

21 | ```
one-half time during the period on which the final rate of
``` | ||||||

22 | `earnings was based.` ```
``` | ||||||

23 | ` ` `(f) A participant is entitled to such additional annuity as ` | ||||||

24 | ```
may be provided
on an actuarially equivalent basis, by any
``` | ||||||

25 | ```
accumulated
additional contributions to his or her credit.
``` | ||||||

26 | ```
However,
the additional contributions made by the participant
``` |

| |||||||

| |||||||

1 | ```
toward the automatic
increases in annuity provided under this
``` | ||||||

2 | ```
Section shall not be taken into
account in determining the
``` | ||||||

3 | `amount of such additional annuity.` ```
``` | ||||||

4 | ` ` `(g) If, (1) by law, a function of a governmental unit, as ` | ||||||

5 | ```
defined by Section
20-107 of this Code, is transferred in whole
``` | ||||||

6 | ```
or in part to an employer, and (2)
a participant transfers
``` | ||||||

7 | ```
employment from such governmental unit to such employer
within
``` | ||||||

8 | `6 months after the transfer of the function, and (3) the sum of ` | ||||||

9 | ```
(A) the
annuity payable to the participant under Rule 1, 2, or
``` | ||||||

10 | ```
3 of this Section (B)
all proportional annuities payable to the
``` | ||||||

11 | ```
participant by all other retirement
systems covered by Article
``` | ||||||

12 | ```
20, and (C) the initial primary insurance amount to
which the
``` | ||||||

13 | `participant is entitled under the Social Security Act, is less ` | ||||||

14 | ```
than
the retirement annuity which would have been payable if
``` | ||||||

15 | ```
all of the
participant's pension credits validated under
``` | ||||||

16 | ```
Section 20-109 had been validated
under this system, a
``` | ||||||

17 | ```
supplemental annuity equal to the difference in such
amounts
``` | ||||||

18 | `shall be payable to the participant.` ```
``` | ||||||

19 | ` ` ```
(h) On January 1, 1981, an annuitant who was receiving
a
``` | ||||||

20 | `retirement annuity on or before January 1, 1971 shall have his ` | ||||||

21 | ```
or her
retirement annuity then being paid increased $1 per
``` | ||||||

22 | ```
month for
each year of creditable service. On January 1, 1982,
``` | ||||||

23 | ```
an annuitant whose
retirement annuity began on or before
``` | ||||||

24 | ```
January 1, 1977, shall have his or her
retirement annuity then
``` | ||||||

25 | ```
being paid increased $1 per month for each year of
creditable
``` | ||||||

26 | `service.` ```
``` |

| |||||||

| |||||||

1 | ` ` `(i) On January 1, 1987, any annuitant whose retirement ` | ||||||

2 | ```
annuity began on or
before January 1, 1977, shall have the
``` | ||||||

3 | ```
monthly retirement annuity increased by
an amount equal to 8¢
``` | ||||||

4 | ```
per year of creditable service times the number of years
that
``` | ||||||

5 | `have elapsed since the annuity began.` ```
``` | ||||||

6 | `(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; ` | ||||||

7 | `98-92, eff. 7-16-13.)` ```
``` | ||||||

8 | ` ` `(Text of Section after amendment by P.A. 98-599` `)` ```
``` | ||||||

9 | ` ` `Sec. 15-136. ` `Retirement annuities - Amount. ` `The provisions ` | ||||||

10 | ```
of this
Section 15-136 apply only to those participants who are
``` | ||||||

11 | ```
participating in the
traditional benefit package or the
``` | ||||||

12 | ```
portable benefit package and do not
apply to participants who
``` | ||||||

13 | `are participating in the self-managed plan.` ```
``` | ||||||

14 | ` ` `(a) The amount of a participant's retirement annuity, ` | ||||||

15 | ```
expressed in the form
of a single-life annuity, shall be
``` | ||||||

16 | ```
determined by whichever of the following
rules is applicable
``` | ||||||

17 | `and provides the largest annuity:` ```
``` | ||||||

18 | ` ` `Rule 1: The retirement annuity shall be 1.67% of final rate ` | ||||||

19 | ```
of earnings for
each of the first 10 years of service, 1.90%
``` | ||||||

20 | ```
for each of the next 10 years of
service, 2.10% for each year
``` | ||||||

21 | ```
of service in excess of 20 but not exceeding 30,
and 2.30% for
``` | ||||||

22 | ```
each year in excess of 30; or for persons who retire on or
``` | ||||||

23 | `after January 1, 1998, 2.2% of the final rate of earnings for ` | ||||||

24 | ```
each year of
service.
``` ```
``` | ||||||

25 | ` ` `Rule 2: The retirement annuity shall be the sum of the ` |

| |||||||

| |||||||

1 | ```
following,
determined from amounts credited to the participant
``` | ||||||

2 | ```
in accordance with the
actuarial tables and the effective rate
``` | ||||||

3 | ```
of interest in effect at the
time the retirement annuity
``` | ||||||

4 | `begins:` ```
``` ```
``` | ||||||

5 | ` ` ` ` `(i) the normal annuity which can be provided on an ` | ||||||

6 | ```
actuarially
equivalent basis (using the effective rate of
``` | ||||||

7 | `interest in effect at the time of retirement for ` | ||||||

8 | `retirements occurring on or after July 1, 2014), by the ` | ||||||

9 | ```
accumulated normal contributions as of
the date the annuity
``` | ||||||

10 | `begins;` ```
``` ```
``` | ||||||

11 | ` ` ` ` `(ii) an annuity from employer contributions of an ` | ||||||

12 | ```
amount equal to that
which can be provided on an
``` | ||||||

13 | `actuarially equivalent basis (using the effective rate of ` | ||||||

14 | `interest in effect at the time of retirement for ` | ||||||

15 | `retirements occurring on or after July 1, 2014) from the ` | ||||||

16 | ```
accumulated
normal contributions made by the participant
``` | ||||||

17 | ```
under Section 15-113.6 and Section
15-113.7 plus 1.4 times
``` | ||||||

18 | ```
all other accumulated normal contributions made by
the
``` | ||||||

19 | `participant; and` ```
``` ```
``` | ||||||

20 | ` ` ` ` `(iii) the annuity that can be provided on an ` | ||||||

21 | ```
actuarially equivalent basis
(using the effective rate of
``` | ||||||

22 | `interest in effect at the time of retirement for ` | ||||||

23 | `retirements occurring on or after July 1, 2014) from the ` | ||||||

24 | `entire contribution made by the participant under Section ` | ||||||

25 | `15-113.3.` ```
``` | ||||||

26 | ` ` `Notwithstanding any other provision of this Rule 2, a ` |

| |||||||

| |||||||

1 | `participant's retirement annuity calculated under this Rule 2 ` | ||||||

2 | `shall not be less than the retirement annuity that participant ` | ||||||

3 | `would have received under this Rule 2 had he or she retired ` `on ` | ||||||

4 | `June 30, 2014` ` ` `during the fiscal year preceding the effective ` | ||||||

5 | `date of this amendatory Act of the 98th General Assembly` `. ` | ||||||

6 | ` ` `With respect to a police officer or firefighter who retires ` | ||||||

7 | ```
on or after
August 14, 1998, the accumulated normal
``` | ||||||

8 | ```
contributions taken into account under
clauses (i) and (ii) of
``` | ||||||

9 | ```
this Rule 2 shall include the additional normal
contributions
``` | ||||||

10 | ```
made by the police officer or firefighter under Section
``` | ||||||

11 | `15-157(a).` ```
``` | ||||||

12 | ` ` `The amount of a retirement annuity calculated under this ` | ||||||

13 | ```
Rule 2 shall
be computed solely on the basis of the
``` | ||||||

14 | ```
participant's accumulated normal
contributions, as specified
``` | ||||||

15 | ```
in this Rule and defined in Section 15-116.
Neither an employee
``` | ||||||

16 | ```
or employer contribution for early retirement under
Section
``` | ||||||

17 | `15-136.2 nor any other employer contribution shall be used in ` | ||||||

18 | ```
the
calculation of the amount of a retirement annuity under
``` | ||||||

19 | `this Rule 2.` ```
``` | ||||||

20 | ` ` `This amendatory Act of the 91st General Assembly is a ` | ||||||

21 | ```
clarification of
existing law and applies to every participant
``` | ||||||

22 | ```
and annuitant without regard to
whether status as an employee
``` | ||||||

23 | ```
terminates before the effective date of this
amendatory Act.
``` ```
``` | ||||||

24 | ` ` `This Rule 2 does not apply to a person who first becomes an ` | ||||||

25 | ```
employee under this Article on or after July 1, 2005.
``` | ||||||

26 | ` ` `Rule 3: The retirement annuity of a participant who is ` |

| |||||||

| |||||||

1 | ```
employed
at least one-half time during the period on which his
``` | ||||||

2 | ```
or her final rate of
earnings is based, shall be equal to the
``` | ||||||

3 | ```
participant's years of service
not to exceed 30, multiplied by
``` | ||||||

4 | ```
(1) $96 if the participant's final rate
of earnings is less
``` | ||||||

5 | ```
than $3,500, (2) $108 if the final rate of earnings is
at least
``` | ||||||

6 | `$3,500 but less than $4,500, (3) $120 if the final rate of ` | ||||||

7 | ```
earnings
is at least $4,500 but less than $5,500, (4) $132 if
``` | ||||||

8 | ```
the final rate
of earnings is at least $5,500 but less than
``` | ||||||

9 | ```
$6,500, (5)
$144 if the final rate of earnings is at least
``` | ||||||

10 | ```
$6,500 but less than
$7,500, (6) $156 if the final rate of
``` | ||||||

11 | ```
earnings is at least $7,500 but less
than $8,500, (7) $168 if
``` | ||||||

12 | ```
the final rate of earnings is at least $8,500 but
less than
``` | ||||||

13 | ```
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
``` | ||||||

14 | `more, except that the annuity for those persons having made an ` | ||||||

15 | ```
election under
Section 15-154(a-1) shall be calculated and
``` | ||||||

16 | ```
payable under the portable
retirement benefit program pursuant
``` | ||||||

17 | `to the provisions of Section 15-136.4.` ```
``` | ||||||

18 | ` ` `Rule 4: A participant who is at least age 50 and has 25 or ` | ||||||

19 | ```
more years of
service as a police officer or firefighter, and a
``` | ||||||

20 | ```
participant who is age 55 or
over and has at least 20 but less
``` | ||||||

21 | ```
than 25 years of service as a police officer
or firefighter,
``` | ||||||

22 | ```
shall be entitled to a retirement annuity of 2 1/4% of the
``` | ||||||

23 | `final rate of earnings for each of the first 10 years of ` | ||||||

24 | ```
service as a police
officer or firefighter, 2 1/2% for each of
``` | ||||||

25 | ```
the next 10 years of service as a
police officer or
``` | ||||||

26 | ```
firefighter, and 2 3/4% for each year of service as a police
``` |

| |||||||

| |||||||

1 | `officer or firefighter in excess of 20. The retirement annuity ` | ||||||

2 | ```
for all other
service shall be computed under Rule 1. A Tier 2
``` | ||||||

3 | `member is eligible for a retirement annuity calculated under ` | ||||||

4 | `Rule 4 only if that Tier 2 member meets the service ` | ||||||

5 | `requirements for that benefit calculation as prescribed under ` | ||||||

6 | `this Rule 4 in addition to the applicable age requirement under ` | ||||||

7 | `subsection (a-5) of Section 15-135.` ```
``` | ||||||

8 | ` ` `For purposes of this Rule 4, a participant's service as a ` | ||||||

9 | ```
firefighter
shall also include the following:
``` ```
``` ```
``` | ||||||

10 | ` ` ` ` `(i) service that is performed while the person is an ` | ||||||

11 | ```
employee under
subsection (h) of Section 15-107; and
``` ```
``` ```
``` | ||||||

12 | ` ` ` ` `(ii) in the case of an individual who was a ` | ||||||

13 | ```
participating employee
employed in the fire department of
``` | ||||||

14 | ```
the University of Illinois's
Champaign-Urbana campus
``` | ||||||

15 | ```
immediately prior to the elimination of that fire
``` | ||||||

16 | `department and who immediately after the elimination of ` | ||||||

17 | ```
that fire department
transferred to another job with the
``` | ||||||

18 | ```
University of Illinois, service performed
as an employee of
``` | ||||||

19 | ```
the University of Illinois in a position other than police
``` | ||||||

20 | `officer or firefighter, from the date of that transfer ` | ||||||

21 | ```
until the employee's
next termination of service with the
``` | ||||||

22 | `University of Illinois.` ```
``` | ||||||

23 | ` ` `(b) For a Tier 1 member, the retirement annuity provided ` | ||||||

24 | ```
under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each
``` | ||||||

25 | ```
month the participant is under age 60 at the
time of
``` | ||||||

26 | `retirement. However, this reduction shall not apply in the ` |

| |||||||

| |||||||

1 | ```
following
cases:
``` ```
``` ```
``` | ||||||

2 | ` ` ` ` `(1) For a disabled participant whose disability ` | ||||||

3 | ```
benefits have been
discontinued because he or she has
``` | ||||||

4 | ```
exhausted eligibility for disability
benefits under clause
``` | ||||||

5 | `(6) of Section 15-152;` ```
``` ```
``` | ||||||

6 | ` ` ` ` `(2) For a participant who has at least the number of ` | ||||||

7 | ```
years of service
required to retire at any age under
``` | ||||||

8 | `subsection (a) of Section 15-135; or` ```
``` ```
``` | ||||||

9 | ` ` ` ` `(3) For that portion of a retirement annuity which has ` | ||||||

10 | ```
been provided on
account of service of the participant
``` | ||||||

11 | ```
during periods when he or she performed
the duties of a
``` | ||||||

12 | `police officer or firefighter, if these duties were ` | ||||||

13 | ```
performed
for at least 5 years immediately preceding the
``` | ||||||

14 | ```
date the retirement annuity
is to begin.
``` ```
``` | ||||||

15 | ` ` `(b-5) The retirement annuity of a Tier 2 member who is ` | ||||||

16 | `retiring after attaining age 62 with at least 10 years of ` | ||||||

17 | `service credit shall be reduced by 1/2 of 1% for each full ` | ||||||

18 | `month that the member's age is under age 67. ` | ||||||

19 | ` ` `(c) The maximum retirement annuity provided under Rules 1, ` | ||||||

20 | ```
2, 4,
and 5
shall be the lesser of (1) the annual limit of
``` | ||||||

21 | ```
benefits as specified in
Section 415 of the Internal Revenue
``` | ||||||

22 | ```
Code of 1986, as such Section may be
amended from time to time
``` | ||||||

23 | ```
and as such benefit limits shall be adjusted by
the
``` | ||||||

24 | ```
Commissioner of Internal Revenue, and (2) 80% of final rate of
``` | ||||||

25 | `earnings.` ```
``` | ||||||

26 | ` ` `(d) This subsection (d) is subject to subsections (d-1) and ` |

| |||||||

| |||||||

1 | `(d-2). A Tier 1 member whose status as an employee terminates ` | ||||||

2 | ```
after August 14,
1969 shall receive automatic increases in his
``` | ||||||

3 | ```
or her retirement annuity as
follows:
``` ```
``` | ||||||

4 | ` ` `Effective January 1 immediately following the date the ` | ||||||

5 | ```
retirement annuity
begins, the annuitant shall receive an
``` | ||||||

6 | ```
increase in his or her monthly
retirement annuity of 0.125% of
``` | ||||||

7 | ```
the monthly retirement annuity provided under
Rule 1, Rule 2,
``` | ||||||

8 | ```
Rule 3, or Rule 4 contained in this
Section, multiplied by
the
``` | ||||||

9 | `number of full months which elapsed from the date the ` | ||||||

10 | ```
retirement annuity
payments began to January 1, 1972, plus
``` | ||||||

11 | ```
0.1667% of such annuity, multiplied by
the number of full
``` | ||||||

12 | ```
months which elapsed from January 1, 1972, or the date the
``` | ||||||

13 | `retirement annuity payments began, whichever is later, to ` | ||||||

14 | ```
January 1, 1978, plus
0.25% of such annuity multiplied by the
``` | ||||||

15 | ```
number of full months which elapsed
from January 1, 1978, or
``` | ||||||

16 | ```
the date the retirement annuity payments began,
whichever is
``` | ||||||

17 | `later, to the effective date of the increase.` ```
``` | ||||||

18 | ` ` `The annuitant shall receive an increase in his or her ` | ||||||

19 | ```
monthly retirement
annuity on each January 1 thereafter during
``` | ||||||

20 | ```
the annuitant's life of 3% of
the monthly annuity provided
``` | ||||||

21 | ```
under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this
``` | ||||||

22 | `Section. The change made under this subsection by P.A. 81-970 ` | ||||||

23 | ```
is
effective January 1, 1980 and applies to each annuitant
``` | ||||||

24 | ```
whose status as
an employee terminates before or after that
``` | ||||||

25 | `date.` ```
``` | ||||||

26 | ` ` `Beginning January 1, 1990, all automatic annual increases ` |

| |||||||

| |||||||

1 | ```
payable under
this Section shall be calculated as a percentage
``` | ||||||

2 | ```
of the total annuity
payable at the time of the increase,
``` | ||||||

3 | ```
including all increases previously
granted under this Article.
``` ```
``` | ||||||

4 | ` ` `The change made in this subsection by P.A. 85-1008 is ` | ||||||

5 | ```
effective January
26, 1988, and is applicable without regard to
``` | ||||||

6 | ```
whether status as an employee
terminated before that date.
``` ```
``` | ||||||

7 | ` ` `(d-1) Notwithstanding subsection (d), but subject to the ` | ||||||

8 | `provisions of subsection (d-2), all automatic increases ` | ||||||

9 | `payable under subsection (d) on or after the effective date of ` | ||||||

10 | `this amendatory Act of the 98th General Assembly shall be ` | ||||||

11 | ```
calculated as 3% of the lesser of (1) the total annuity
payable
``` | ||||||

12 | ```
at the time of the increase, including previous
increases
``` | ||||||

13 | `granted, or (2) $1,000 multiplied by the number of years of ` | ||||||

14 | `creditable service upon which the annuity is based; however, in ` | ||||||

15 | `the case of an initial increase subject to this subsection, the ` | ||||||

16 | `amount of that increase shall be prorated if less than one year ` | ||||||

17 | `has elapsed since retirement.` | ||||||

18 | ` ` `Beginning January 1, 2016, the $1,000 referred to in item ` | ||||||

19 | `(2) of this subsection (d-1) shall be increased on each January ` | ||||||

20 | `1 by the annual unadjusted percentage increase (but not less ` | ||||||

21 | `than zero) in the consumer price index-u for the 12 months ` | ||||||

22 | `ending with the preceding September; these adjustments shall be ` | ||||||

23 | ```
cumulative and compounded.
For the purposes of this subsection
``` | ||||||

24 | `(d-1), "consumer price index-u" means the index published by ` | ||||||

25 | `the Bureau of Labor Statistics of the United States Department ` | ||||||

26 | `of Labor that measures the average change in prices of goods ` |

| |||||||

| |||||||

1 | `and services purchased by all urban consumers, United States ` | ||||||

2 | `city average, all items, 1982-84 = 100. The new dollar amount ` | ||||||

3 | `resulting from each annual adjustment shall be determined by ` | ||||||

4 | `the Public Pension Division of the Department of Insurance and ` | ||||||

5 | `made available to the System by November 1 of each year. ` | ||||||

6 | ` ` `This subsection (d-1) is applicable without regard to ` | ||||||

7 | `whether the person is in service on or after the effective date ` | ||||||

8 | `of this amendatory Act of the 98th General Assembly. ` | ||||||

9 | ` ` `(d-2) Notwithstanding subsections (d) and (d-1), for an ` | ||||||

10 | `active or inactive Tier 1 member who has not begun to receive a ` | ||||||

11 | `retirement annuity under this Article before July 1, 2014:` | ||||||

12 | ` ` ` ` `(1) the automatic annual increase payable under ` | ||||||

13 | `subsection (d) the second January following the date the ` | ||||||

14 | `retirement annuity begins shall be equal to 0% of the total ` | ||||||

15 | `annuity payable at the time of the increase, if he or she ` | ||||||

16 | `is at least age 50 on the effective date of this amendatory ` | ||||||

17 | `Act; ` | ||||||

18 | ` ` ` ` `(2) the automatic annual increase payable under ` | ||||||

19 | `subsection (d) the second, fourth, and sixth January ` | ||||||

20 | `following the date the retirement annuity begins shall be ` | ||||||

21 | `equal to 0% of the total annuity payable at the time of the ` | ||||||

22 | `increase, if he or she is at least age 47 but less than age ` | ||||||

23 | `50 on the effective date of this amendatory Act; ` | ||||||

24 | ` ` ` ` `(3) the automatic annual increase payable under ` | ||||||

25 | `subsection (d) the second, fourth, sixth, and eighth ` | ||||||

26 | `January following the date the retirement annuity begins ` |

| |||||||

| |||||||

1 | `shall be equal to 0% of the total annuity payable at the ` | ||||||

2 | `time of the increase, if he or she is at least age 44 but ` | ||||||

3 | `less than age 47 on the effective date of this amendatory ` | ||||||

4 | `Act; ` | ||||||

5 | ` ` ` ` `(4) the automatic annual increase payable under ` | ||||||

6 | `subsection (d) the second, fourth, sixth, eighth, and tenth ` | ||||||

7 | `January following the date the retirement annuity begins ` | ||||||

8 | `shall be equal to 0% of the total annuity payable at the ` | ||||||

9 | `time of the increase, if he or she is less than age 44 on ` | ||||||

10 | `the effective date of this amendatory Act. ` | ||||||

11 | ` ` `(d-5) A retirement annuity of a Tier 2 member shall receive ` | ||||||

12 | `annual increases on the January 1 occurring either on or after ` | ||||||

13 | `the attainment of age 67 or the first anniversary of the ` | ||||||

14 | `annuity start date, whichever is later. Each annual increase ` | ||||||

15 | `shall be calculated at 3% or one half the annual unadjusted ` | ||||||

16 | `percentage increase (but not less than zero) in the consumer ` | ||||||

17 | `price index-u for the 12 months ending with the September ` | ||||||

18 | `preceding each November 1, whichever is less, of the originally ` | ||||||

19 | `granted retirement annuity. If the annual unadjusted ` | ||||||

20 | `percentage change in the consumer price index-u for the 12 ` | ||||||

21 | `months ending with the September preceding each November 1 is ` | ||||||

22 | `zero or there is a decrease, then the annuity shall not be ` | ||||||

23 | `increased. ` | ||||||

24 | ` ` `(e) If, on January 1, 1987, or the date the retirement ` | ||||||

25 | ```
annuity payment
period begins, whichever is later, the sum of
``` | ||||||

26 | ```
the retirement annuity
provided under Rule 1 or Rule 2 of this
``` |

| |||||||

| |||||||

1 | ```
Section
and the automatic annual increases provided under the
``` | ||||||

2 | ```
preceding subsection
or Section 15-136.1, amounts to less than
``` | ||||||

3 | ```
the retirement
annuity which would be provided by Rule 3, the
``` | ||||||

4 | ```
retirement
annuity shall be increased as of January 1, 1987, or
``` | ||||||

5 | ```
the date the
retirement annuity payment period begins,
``` | ||||||

6 | ```
whichever is later, to the amount
which would be provided by
``` | ||||||

7 | ```
Rule 3 of this Section. Such increased
amount shall be
``` | ||||||

8 | ```
considered as the retirement annuity in determining
benefits
``` | ||||||

9 | ```
provided under other Sections of this Article. This paragraph
``` | ||||||

10 | `applies without regard to whether status as an employee ` | ||||||

11 | ```
terminated before the
effective date of this amendatory Act of
``` | ||||||

12 | ```
1987, provided that the annuitant was
employed at least
``` | ||||||

13 | ```
one-half time during the period on which the final rate of
``` | ||||||

14 | `earnings was based.` ```
``` | ||||||

15 | ` ` `(f) A participant is entitled to such additional annuity as ` | ||||||

16 | ```
may be provided
on an actuarially equivalent basis, by any
``` | ||||||

17 | ```
accumulated
additional contributions to his or her credit.
``` | ||||||

18 | ```
However,
the additional contributions made by the participant
``` | ||||||

19 | ```
toward the automatic
increases in annuity provided under this
``` | ||||||

20 | ```
Section shall not be taken into
account in determining the
``` | ||||||

21 | `amount of such additional annuity.` ```
``` | ||||||

22 | ` ` `(g) If, (1) by law, a function of a governmental unit, as ` | ||||||

23 | ```
defined by Section
20-107 of this Code, is transferred in whole
``` | ||||||

24 | ```
or in part to an employer, and (2)
a participant transfers
``` | ||||||

25 | ```
employment from such governmental unit to such employer
within
``` | ||||||

26 | `6 months after the transfer of the function, and (3) the sum of ` |

| |||||||

| |||||||

1 | ```
(A) the
annuity payable to the participant under Rule 1, 2, or
``` | ||||||

2 | ```
3 of this Section (B)
all proportional annuities payable to the
``` | ||||||

3 | ```
participant by all other retirement
systems covered by Article
``` | ||||||

4 | ```
20, and (C) the initial primary insurance amount to
which the
``` | ||||||

5 | `participant is entitled under the Social Security Act, is less ` | ||||||

6 | ```
than
the retirement annuity which would have been payable if
``` | ||||||

7 | ```
all of the
participant's pension credits validated under
``` | ||||||

8 | ```
Section 20-109 had been validated
under this system, a
``` | ||||||

9 | ```
supplemental annuity equal to the difference in such
amounts
``` | ||||||

10 | `shall be payable to the participant.` ```
``` | ||||||

11 | ` ` ```
(h) On January 1, 1981, an annuitant who was receiving
a
``` | ||||||

12 | `retirement annuity on or before January 1, 1971 shall have his ` | ||||||

13 | ```
or her
retirement annuity then being paid increased $1 per
``` | ||||||

14 | ```
month for
each year of creditable service. On January 1, 1982,
``` | ||||||

15 | ```
an annuitant whose
retirement annuity began on or before
``` | ||||||

16 | ```
January 1, 1977, shall have his or her
retirement annuity then
``` | ||||||

17 | ```
being paid increased $1 per month for each year of
creditable
``` | ||||||

18 | `service.` ```
``` | ||||||

19 | ` ` `(i) On January 1, 1987, any annuitant whose retirement ` | ||||||

20 | ```
annuity began on or
before January 1, 1977, shall have the
``` | ||||||

21 | ```
monthly retirement annuity increased by
an amount equal to 8¢
``` | ||||||

22 | ```
per year of creditable service times the number of years
that
``` | ||||||

23 | `have elapsed since the annuity began.` ```
``` | ||||||

24 | ` ` `(j) For participants to whom subsection (a-3) of Section ` | ||||||

25 | `15-135 applies, the references to age 50, 55, and 62 in this ` | ||||||

26 | `Section are increased as provided in subsection (a-3) of ` |

| |||||||

| |||||||

1 | `Section 15-135. ` | ||||||

2 | `(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; ` | ||||||

3 | `98-92, eff. 7-16-13; 98-599, eff. 6-1-14.)` ```
``` | ||||||

4 | ` ` `Section 95. ` `No acceleration or delay. ` `Where this Act makes ` | ||||||

5 | `changes in a statute that is represented in this Act by text ` | ||||||

6 | `that is not yet or no longer in effect (for example, a Section ` | ||||||

7 | `represented by multiple versions), the use of that text does ` | ||||||

8 | `not accelerate or delay the taking effect of (i) the changes ` | ||||||

9 | `made by this Act or (ii) provisions derived from any other ` | ||||||

10 | `Public Act.` ```
``` | ||||||

11 | ` ` `Section 99. ` `Effective date. ` `This Act takes effect upon ` | ||||||

12 | `becoming law.` ` ` ```
``` ```
``` |