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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 1-160 as follows:
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6 | (40 ILCS 5/1-160)
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7 | Sec. 1-160. Provisions applicable to new hires. | ||||||||||||||||||||||||
8 | (a) The provisions of this Section apply to a person who, | ||||||||||||||||||||||||
9 | on or after January 1, 2011, first becomes a member or a | ||||||||||||||||||||||||
10 | participant under any reciprocal retirement system or pension | ||||||||||||||||||||||||
11 | fund established under this Code, other than a retirement | ||||||||||||||||||||||||
12 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||||||||||||||||||||
13 | 15 or 18 of this Code, notwithstanding any other provision of | ||||||||||||||||||||||||
14 | this Code to the contrary, but do not apply to any self-managed | ||||||||||||||||||||||||
15 | plan established under this Code, to any person with respect to | ||||||||||||||||||||||||
16 | service as a sheriff's law enforcement employee under Article | ||||||||||||||||||||||||
17 | 7, or to any participant of the retirement plan established | ||||||||||||||||||||||||
18 | under Section 22-101. Notwithstanding anything to the contrary | ||||||||||||||||||||||||
19 | in this Section, for purposes of this Section, a person who | ||||||||||||||||||||||||
20 | participated in a retirement system under Article 15 prior to | ||||||||||||||||||||||||
21 | January 1, 2011 shall be deemed a person who first became a | ||||||||||||||||||||||||
22 | member or participant prior to January 1, 2011 under any | ||||||||||||||||||||||||
23 | retirement system or pension fund subject to this Section. The |
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1 | changes made to this Section by Public Act 98-596 are a | ||||||
2 | clarification of existing law and are intended to be | ||||||
3 | retroactive to the effective date of Public Act 96-889, | ||||||
4 | notwithstanding the provisions of Section 1-103.1 of this Code. | ||||||
5 | (b) "Final average salary" means the average monthly (or | ||||||
6 | annual) salary obtained by dividing the total salary or | ||||||
7 | earnings calculated under the Article applicable to the member | ||||||
8 | or participant during the 96 consecutive months (or 8 | ||||||
9 | consecutive years) of service within the last 120 months (or 10 | ||||||
10 | years) of service in which the total salary or earnings | ||||||
11 | calculated under the applicable Article was the highest by the | ||||||
12 | number of months (or years) of service in that period. For the | ||||||
13 | purposes of a person who first becomes a member or participant | ||||||
14 | of any retirement system or pension fund to which this Section | ||||||
15 | applies on or after January 1, 2011, in this Code, "final | ||||||
16 | average salary" shall be substituted for the following: | ||||||
17 | (1) In Article 7 (except for service as sheriff's law | ||||||
18 | enforcement employees), "final rate of earnings". | ||||||
19 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
20 | annual salary for any 4 consecutive years within the last | ||||||
21 | 10 years of service immediately preceding the date of | ||||||
22 | withdrawal". | ||||||
23 | (3) In Article 13, "average final salary". | ||||||
24 | (4) In Article 14, "final average compensation". | ||||||
25 | (5) In Article 17, "average salary". | ||||||
26 | (6) In Section 22-207, "wages or salary received by him |
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1 | at the date of retirement or discharge". | ||||||
2 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
3 | this Code (including without limitation the calculation of | ||||||
4 | benefits and employee contributions), the annual earnings, | ||||||
5 | salary, or wages (based on the plan year) of a member or | ||||||
6 | participant to whom this Section applies shall not exceed | ||||||
7 | $106,800; however, that amount shall annually thereafter be | ||||||
8 | increased by the lesser of (i) 3% of that amount, including all | ||||||
9 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
10 | percentage increase (but not less than zero) in the consumer | ||||||
11 | price index-u
for the 12 months ending with the September | ||||||
12 | preceding each November 1, including all previous adjustments. | ||||||
13 | For the purposes of this Section, "consumer price index-u" | ||||||
14 | means
the index published by the Bureau of Labor Statistics of | ||||||
15 | the United States
Department of Labor that measures the average | ||||||
16 | change in prices of goods and
services purchased by all urban | ||||||
17 | consumers, United States city average, all
items, 1982-84 = | ||||||
18 | 100. The new amount resulting from each annual adjustment
shall | ||||||
19 | be determined by the Public Pension Division of the Department | ||||||
20 | of Insurance and made available to the boards of the retirement | ||||||
21 | systems and pension funds by November 1 of each year. | ||||||
22 | (c) A member or participant is entitled to a retirement
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23 | annuity upon written application if he or she has attained age | ||||||
24 | 67 (beginning January 1, 2015, age 65 with respect to service | ||||||
25 | under Article 8, 11, or 12 of this Code that is subject to this | ||||||
26 | Section) and has at least 10 years of service credit and is |
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1 | otherwise eligible under the requirements of the applicable | ||||||
2 | Article. | ||||||
3 | A member or participant who has attained age 62 (beginning | ||||||
4 | January 1, 2015, age 60 with respect to service under Article | ||||||
5 | 8, 11, or 12 of this Code that is subject to this Section) and | ||||||
6 | has at least 10 years of service credit and is otherwise | ||||||
7 | eligible under the requirements of the applicable Article may | ||||||
8 | elect to receive the lower retirement annuity provided
in | ||||||
9 | subsection (d) of this Section. | ||||||
10 | (d) The retirement annuity of a member or participant who | ||||||
11 | is retiring after attaining age 62 (beginning January 1, 2015, | ||||||
12 | age 60 with respect to service under Article 8, 11, or 12 of | ||||||
13 | this Code that is subject to this Section) with at least 10 | ||||||
14 | years of service credit shall be reduced by one-half
of 1% for | ||||||
15 | each full month that the member's age is under age 67 | ||||||
16 | (beginning January 1, 2015, age 65 with respect to service | ||||||
17 | under Article 8, 11, or 12 of this Code that is subject to this | ||||||
18 | Section). | ||||||
19 | (e) Any retirement annuity or supplemental annuity shall be | ||||||
20 | subject to annual increases on the January 1 occurring either | ||||||
21 | on or after the attainment of age 67 (beginning January 1, | ||||||
22 | 2015, age 65 with respect to service under Article 8, 11, or 12 | ||||||
23 | of this Code that is subject to this Section) or the first | ||||||
24 | anniversary (the second anniversary with respect to service | ||||||
25 | under Article 8 or 11) of the annuity start date, whichever is | ||||||
26 | later. Each annual increase shall be calculated at 3% or |
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1 | one-half the annual unadjusted percentage increase (but not | ||||||
2 | less than zero) in the consumer price index-u for the 12 months | ||||||
3 | ending with the September preceding each November 1, whichever | ||||||
4 | is less, of the originally granted retirement annuity. If the | ||||||
5 | annual unadjusted percentage change in the consumer price | ||||||
6 | index-u for the 12 months ending with the September preceding | ||||||
7 | each November 1 is zero or there is a decrease, then the | ||||||
8 | annuity shall not be increased. | ||||||
9 | Notwithstanding any provision of this Section to the | ||||||
10 | contrary, with respect to service under Article 8 or 11 of this | ||||||
11 | Code that is subject to this Section, no annual increase under | ||||||
12 | this subsection shall be paid or accrue to any person in year | ||||||
13 | 2025. In all other years, the Fund shall continue to pay annual | ||||||
14 | increases as provided in this Section. | ||||||
15 | Notwithstanding Section 1-103.1 of this Code, the changes | ||||||
16 | in this amendatory Act of the 98th General Assembly are | ||||||
17 | applicable without regard to whether the employee was in active | ||||||
18 | service on or after the effective date of this amendatory Act | ||||||
19 | of the 98th General Assembly. | ||||||
20 | (f) The initial survivor's or widow's annuity of an | ||||||
21 | otherwise eligible survivor or widow of a retired member or | ||||||
22 | participant who first became a member or participant on or | ||||||
23 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
24 | retired member's or participant's retirement annuity at the | ||||||
25 | date of death. In the case of the death of a member or | ||||||
26 | participant who has not retired and who first became a member |
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1 | or participant on or after January 1, 2011, eligibility for a | ||||||
2 | survivor's or widow's annuity shall be determined by the | ||||||
3 | applicable Article of this Code. The initial benefit shall be | ||||||
4 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
5 | child's annuity of an otherwise eligible child shall be in the | ||||||
6 | amount prescribed under each Article if applicable. Any | ||||||
7 | survivor's or widow's annuity shall be increased (1) on each | ||||||
8 | January 1 occurring on or after the commencement of the annuity | ||||||
9 | if
the deceased member died while receiving a retirement | ||||||
10 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
11 | after the first anniversary
of the commencement of the annuity. | ||||||
12 | Each annual increase shall be calculated at 3% or one-half the | ||||||
13 | annual unadjusted percentage increase (but not less than zero) | ||||||
14 | in the consumer price index-u for the 12 months ending with the | ||||||
15 | September preceding each November 1, whichever is less, of the | ||||||
16 | originally granted survivor's annuity. If the annual | ||||||
17 | unadjusted percentage change in the consumer price index-u for | ||||||
18 | the 12 months ending with the September preceding each November | ||||||
19 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
20 | increased. | ||||||
21 | (g) The benefits in Section 14-110 apply only if the person | ||||||
22 | is employed in a title or position by any State agency or the | ||||||
23 | Office of Secretary of State and vested with such | ||||||
24 | investigative, law enforcement, or peace officer duties as | ||||||
25 | render him or her ineligible for coverage under the Social | ||||||
26 | Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), |
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1 | and 218(l)(1) of that Act, including a State policeman, a fire | ||||||
2 | fighter in the fire protection service of a department, or a | ||||||
3 | security employee of the Department of Corrections or the | ||||||
4 | Department of Juvenile Justice, as those terms are defined in | ||||||
5 | subsection (b) of Section 14-110. A person who meets the | ||||||
6 | requirements of this Section is entitled to an annuity | ||||||
7 | calculated under the provisions of Section 14-110, in lieu of | ||||||
8 | the regular or minimum retirement annuity, only if the person | ||||||
9 | has withdrawn from service with not less than 20
years of | ||||||
10 | eligible creditable service and has attained age 60, regardless | ||||||
11 | of whether
the attainment of age 60 occurs while the person is
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12 | still in service. | ||||||
13 | (h) If a person who first becomes a member or a participant | ||||||
14 | of a retirement system or pension fund subject to this Section | ||||||
15 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
16 | or retirement pension under that system or fund and becomes a | ||||||
17 | member or participant under any other system or fund created by | ||||||
18 | this Code and is employed on a full-time basis, except for | ||||||
19 | those members or participants exempted from the provisions of | ||||||
20 | this Section under subsection (a) of this Section, then the | ||||||
21 | person's retirement annuity or retirement pension under that | ||||||
22 | system or fund shall be suspended during that employment. Upon | ||||||
23 | termination of that employment, the person's retirement | ||||||
24 | annuity or retirement pension payments shall resume and be | ||||||
25 | recalculated if recalculation is provided for under the | ||||||
26 | applicable Article of this Code. |
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1 | If a person who first becomes a member of a retirement | ||||||
2 | system or pension fund subject to this Section on or after | ||||||
3 | January 1, 2012 and is receiving a retirement annuity or | ||||||
4 | retirement pension under that system or fund and accepts on a | ||||||
5 | contractual basis a position to provide services to a | ||||||
6 | governmental entity from which he or she has retired, then that | ||||||
7 | person's annuity or retirement pension earned as an active | ||||||
8 | employee of the employer shall be suspended during that | ||||||
9 | contractual service. A person receiving an annuity or | ||||||
10 | retirement pension under this Code shall notify the pension | ||||||
11 | fund or retirement system from which he or she is receiving an | ||||||
12 | annuity or retirement pension, as well as his or her | ||||||
13 | contractual employer, of his or her retirement status before | ||||||
14 | accepting contractual employment. A person who fails to submit | ||||||
15 | such notification shall be guilty of a Class A misdemeanor and | ||||||
16 | required to pay a fine of $1,000. Upon termination of that | ||||||
17 | contractual employment, the person's retirement annuity or | ||||||
18 | retirement pension payments shall resume and, if appropriate, | ||||||
19 | be recalculated under the applicable provisions of this Code. | ||||||
20 | (i) (Blank). | ||||||
21 | (j) In the case of a conflict between the provisions of | ||||||
22 | this Section and any other provision of this Code, the | ||||||
23 | provisions of this Section shall control.
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24 | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, | ||||||
25 | eff. 11-19-13; 98-622, eff. 6-1-14; 98-641, eff. 6-9-14.)
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