Full Text of HB4666 97th General Assembly
HB4666 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB4666 Introduced , by Rep. Kelly Burke SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-108.1 | from Ch. 108 1/2, par. 2-108.1 | 40 ILCS 5/2-119.1 | from Ch. 108 1/2, par. 2-119.1 | 40 ILCS 5/2-121.1 | from Ch. 108 1/2, par. 2-121.1 | 40 ILCS 5/18-125 | from Ch. 108 1/2, par. 18-125 | 40 ILCS 5/18-125.1 | from Ch. 108 1/2, par. 18-125.1 | 40 ILCS 5/18-128.01 | from Ch. 108 1/2, par. 18-128.01 |
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Amends the General Assembly and Judges Articles of the Illinois Pension Code. Changes the manner in which highest salary for annuity purposes, final average salary, automatic annual increases, and survivor benefits are calculated for (i) persons who first become participants of either system on or after the effective date of the amendatory Act and (ii) current participants of either system who irrevocably elect those reduced benefits.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 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 | | Sections 2-108.1, 2-119.1, 2-121.1, 18-125, 18-125.1, and | 6 | | 18-128.01 as follows:
| 7 | | (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
| 8 | | Sec. 2-108.1. Highest salary for annuity purposes.
| 9 | | (a) "Highest salary for annuity purposes" means whichever | 10 | | of
the following is applicable to the participant:
| 11 | | For a participant who first becomes a participant of this | 12 | | System before August 10, 2009 (the effective date of Public Act | 13 | | 96-207):
| 14 | | (1) For a participant who is a member of the General | 15 | | Assembly on his
or her last day of service: the highest | 16 | | salary that is prescribed by law,
on the participant's last | 17 | | day of service, for a member of the General
Assembly who is | 18 | | not an officer; plus, if the participant was elected or
| 19 | | appointed to serve as an officer of the General Assembly | 20 | | for 2 or more
years and has made contributions as required | 21 | | under subsection (d) of
Section 2-126, the highest | 22 | | additional amount of compensation prescribed by
law, at the | 23 | | time of the participant's service as an officer, for |
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| 1 | | members of
the General Assembly who serve in that office.
| 2 | | (2) For a participant who holds one of the State | 3 | | executive offices
specified in Section 2-105 on his or her | 4 | | last day of service: the highest
salary prescribed by law | 5 | | for service in that office on the participant's
last day of | 6 | | service.
| 7 | | (3) For a participant who is Clerk or Assistant Clerk | 8 | | of the House of Representatives or Secretary or Assistant | 9 | | Secretary of the Senate
on his or her last day of service: | 10 | | the salary received for service in that
capacity on the | 11 | | last day of service, but not to exceed the highest salary
| 12 | | (including additional compensation for service as an | 13 | | officer) that is
prescribed by law on the participant's | 14 | | last day of service for the highest
paid officer of the | 15 | | General Assembly.
| 16 | | (4) For a participant who is a continuing participant | 17 | | under Section
2-117.1 on his or her last day of service: | 18 | | the salary received for service
in that capacity on the | 19 | | last day of service, but not to exceed the highest
salary | 20 | | (including additional compensation for service as an | 21 | | officer) that
is prescribed by law on the participant's | 22 | | last day of service for the
highest paid officer of the | 23 | | General Assembly.
| 24 | | For a participant who first becomes a participant of this | 25 | | System on or after August 10, 2009 (the effective date of | 26 | | Public Act 96-207) and before January 1, 2011 (the effective |
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| 1 | | date of Public Act 96-889), the average monthly salary obtained | 2 | | by dividing the total salary of the participant during the | 3 | | period of: (1) the 48 consecutive months of service within the | 4 | | last 120 months of service in which the total compensation was | 5 | | the highest, or (2) the total period of service, if less than | 6 | | 48 months, by the number of months of service in that period. | 7 | | For a participant who first becomes a participant of this | 8 | | System on or after January 1, 2011 (the effective date of | 9 | | Public Act 96-889), the average monthly salary obtained by | 10 | | dividing the total salary of the participant during the 96 | 11 | | consecutive months of service within the last 120 months of | 12 | | service in which the total compensation was the highest by the | 13 | | number of months of service in that period; however, beginning | 14 | | January 1, 2011, the highest salary for annuity purposes may | 15 | | not exceed $106,800, except that that amount shall annually | 16 | | thereafter be increased by the lesser of (i) 3% of that amount, | 17 | | including all previous adjustments, or (ii) the annual | 18 | | unadjusted percentage increase (but not less than zero) in the | 19 | | consumer price index-u
for the 12 months ending with the | 20 | | September preceding each November 1. | 21 | | For a participant who is a participant on the effective | 22 | | date of this amendatory Act of the 97th General Assembly and | 23 | | who irrevocably elects the reduced benefits under this | 24 | | paragraph and for a participant who first becomes a participant | 25 | | of this System after the effective date of this amendatory Act | 26 | | of the 97th General Assembly, the average monthly salary |
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| 1 | | obtained by dividing the total salary of the participant during | 2 | | the 96 consecutive months of service within the last 120 months | 3 | | of service in which the total compensation was the highest by | 4 | | the number of months of service in that period; however, | 5 | | beginning on the effective date of this amendatory Act of the | 6 | | 97th General Assembly, the highest salary for annuity purposes | 7 | | may not, for the affected persons, exceed $106,800, except that | 8 | | that amount shall annually thereafter be increased by the | 9 | | lesser of (i) 3% of that amount, including all previous | 10 | | adjustments, or (ii) one-half the annual unadjusted percentage | 11 | | increase (but not less than zero) in the consumer price index-u
| 12 | | for the 12 months ending with the September preceding each | 13 | | November 1. | 14 | | "Consumer price index-u" means
the index published by the | 15 | | Bureau of Labor Statistics of the United States
Department of | 16 | | Labor that measures the average change in prices of goods and
| 17 | | services purchased by all urban consumers, United States city | 18 | | average, all
items, 1982-84 = 100. The new amount resulting | 19 | | from each annual adjustment
shall be determined by the Public | 20 | | Pension Division of the Department of Insurance and made | 21 | | available to the Board by November 1 of each year. | 22 | | (b) The earnings limitations of subsection (a) apply to | 23 | | earnings
under any other participating system under the | 24 | | Retirement Systems Reciprocal
Act that are considered in | 25 | | calculating a proportional annuity under this
Article, except | 26 | | in the case of a person who first became a member of this
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| 1 | | System before August 22,
1994.
| 2 | | (c) In calculating the subsection (a) earnings limitation | 3 | | to be applied to
earnings under any other participating system | 4 | | under the Retirement Systems
Reciprocal Act for the purpose of | 5 | | calculating a proportional annuity under this
Article, the | 6 | | participant's last day of service shall be deemed to mean the | 7 | | last
day of service in any participating system from which the | 8 | | person has applied
for a proportional annuity under the | 9 | | Retirement Systems Reciprocal Act.
| 10 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 11 | | 96-1490, eff. 1-1-11.)
| 12 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| 13 | | Sec. 2-119.1. Automatic increase in retirement annuity.
| 14 | | (a) A participant who retires after June 30, 1967, and who | 15 | | has not
received an initial increase under this Section before | 16 | | the effective date
of this amendatory Act of 1991, shall, in | 17 | | January or July next following
the first anniversary of | 18 | | retirement, whichever occurs first, and in the same
month of | 19 | | each year thereafter, but in no event prior to age 60, have the | 20 | | amount
of the originally granted retirement annuity increased | 21 | | as follows: for each
year through 1971, 1 1/2%; for each year | 22 | | from 1972 through 1979, 2%; and for
1980 and each year | 23 | | thereafter, 3%. Annuitants who have received an initial
| 24 | | increase under this subsection prior to the effective date of | 25 | | this amendatory
Act of 1991 shall continue to receive their |
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| 1 | | annual increases in the same month
as the initial increase.
| 2 | | (b) Beginning January 1, 1990, for eligible participants | 3 | | who remain
in service after attaining 20 years of creditable | 4 | | service, the 3% increases
provided under subsection (a) shall | 5 | | begin to accrue on the January 1 next
following the date upon | 6 | | which the participant (1) attains age 55, or (2)
attains 20 | 7 | | years of creditable service, whichever occurs later, and shall
| 8 | | continue to accrue while the participant remains in service; | 9 | | such increases
shall become payable on January 1 or July 1, | 10 | | whichever occurs first, next
following the first anniversary of | 11 | | retirement. For any person who has service
credit in the System | 12 | | for the entire period from January 15, 1969 through
December | 13 | | 31, 1992, regardless of the date of termination of service, the
| 14 | | reference to age 55 in clause (1) of this subsection (b) shall | 15 | | be deemed to
mean age 50.
| 16 | | This subsection (b) does not apply to any person who first | 17 | | becomes a
member of the System after the effective date of this | 18 | | amendatory Act of
the 93rd General Assembly.
| 19 | | (b-5) Notwithstanding any other provision of this Article, | 20 | | a participant who first becomes a participant on or after | 21 | | January 1, 2011 (the effective date of Public Act 96-889) | 22 | | shall, in January or July next following the first anniversary | 23 | | of retirement, whichever occurs first, and in the same month of | 24 | | each year thereafter, but in no event prior to age 67, have the | 25 | | amount of the retirement annuity then being paid increased by | 26 | | 3% or the annual unadjusted percentage increase in the Consumer |
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| 1 | | Price Index for All Urban Consumers as determined by the Public | 2 | | Pension Division of the Department of Insurance under | 3 | | subsection (a) of Section 2-108.1, whichever is less. | 4 | | (b-10) Notwithstanding any other provision of this | 5 | | Article, a participant who is a participant on the effective | 6 | | date of this amendatory Act of the 97th General Assembly and | 7 | | who irrevocably elects the reduced benefits under this | 8 | | subsection (b-10) and a participant who first becomes a | 9 | | participant after the effective date of this amendatory Act of | 10 | | the 97th General Assembly shall, in January or July next | 11 | | following the first anniversary of retirement, whichever | 12 | | occurs first, and in the same month of each year thereafter, | 13 | | but in no event prior to age 67, have the annuity increased by | 14 | | 3% or one-half the annual unadjusted percentage increase (but | 15 | | not less than zero) in the Consumer Price Index for All Urban | 16 | | Consumers as determined by the Public Pension Division of the | 17 | | Department of Insurance under subsection (a) of Section | 18 | | 2-108.1, whichever is less, of the originally granted | 19 | | retirement annuity. | 20 | | (c) The foregoing provisions relating to automatic | 21 | | increases are not
applicable to a participant who retires | 22 | | before having made contributions
(at the rate prescribed in | 23 | | Section 2-126) for automatic increases for less
than the | 24 | | equivalent of one full year. However, in order to be eligible | 25 | | for
the automatic increases, such a participant may make | 26 | | arrangements to pay
to the system the amount required to bring |
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| 1 | | the total contributions for the
automatic increase to the | 2 | | equivalent of one year's contributions based upon
his or her | 3 | | last salary.
| 4 | | (d) A participant who terminated service prior to July 1, | 5 | | 1967, with at
least 14 years of service is entitled to an | 6 | | increase in retirement annuity
beginning January, 1976, and to | 7 | | additional increases in January of each
year thereafter.
| 8 | | The initial increase shall be 1 1/2% of the originally | 9 | | granted retirement
annuity multiplied by the number of full | 10 | | years that the annuitant was in
receipt of such annuity prior | 11 | | to January 1, 1972, plus 2% of the originally
granted | 12 | | retirement annuity for each year after that date. The | 13 | | subsequent
annual increases shall be at the rate of 2% of the | 14 | | originally granted
retirement annuity for each year through | 15 | | 1979 and at the rate of 3% for
1980 and thereafter.
| 16 | | (e) Beginning January 1, 1990, all automatic annual | 17 | | increases payable
under this Section shall be calculated as a | 18 | | percentage of the total annuity
payable at the time of the | 19 | | increase, including previous increases granted
under this | 20 | | Article.
| 21 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 22 | | (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
| 23 | | Sec. 2-121.1. Survivor's annuity - amount.
| 24 | | (a) A surviving spouse shall be entitled to 66 2/3% of the | 25 | | amount of
retirement annuity to which the participant or |
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| 1 | | annuitant was entitled on
the date of death, without regard to | 2 | | whether the participant had attained
age 55 prior to his or her | 3 | | death, subject to a minimum payment of 10% of
salary. If a | 4 | | surviving spouse, regardless of age, has in his or her care
at | 5 | | the date of death any eligible child or children of the | 6 | | participant, the
survivor's annuity shall be the greater of the | 7 | | following: (1) 66 2/3% of
the amount of retirement annuity to | 8 | | which the participant or annuitant was
entitled on the date of | 9 | | death, or (2) 30% of the participant's salary
increased by 10% | 10 | | of salary on account of each such child, subject to a
total | 11 | | payment for the surviving spouse and children of 50% of salary. | 12 | | If
eligible children survive but there is no surviving spouse, | 13 | | or if the
surviving spouse dies or becomes disqualified by
| 14 | | remarriage while eligible children survive, each
eligible | 15 | | child shall be entitled to an annuity of 20% of salary, subject
| 16 | | to a maximum total payment for all such children of 50% of | 17 | | salary.
| 18 | | However, the survivor's annuity payable under this Section | 19 | | shall not be
less than 100% of the amount of retirement annuity | 20 | | to which the participant
or annuitant was entitled on the date | 21 | | of death, if he or she is survived by
a dependent disabled | 22 | | child.
| 23 | | The salary to be used for determining these benefits shall | 24 | | be the
salary used for determining the amount of retirement | 25 | | annuity as provided
in Section 2-119.01.
| 26 | | (b) Upon the death of a participant after the termination |
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| 1 | | of service or
upon death of an annuitant, the maximum total | 2 | | payment to a surviving spouse
and eligible children, or to | 3 | | eligible children alone if there is no surviving
spouse, shall | 4 | | be 75% of the retirement annuity to which the participant
or | 5 | | annuitant was entitled, unless there is a dependent disabled | 6 | | child
among the survivors.
| 7 | | (c) When a child ceases to be an eligible child, the | 8 | | annuity to that
child, or to the surviving spouse on account of | 9 | | that child, shall thereupon
cease, and the annuity payable to | 10 | | the surviving spouse or other eligible
children shall be | 11 | | recalculated if necessary.
| 12 | | Upon the ineligibility of the last eligible child, the | 13 | | annuity shall
immediately revert to the amount payable upon | 14 | | death of a participant or
annuitant who leaves no eligible | 15 | | children. If the surviving spouse is then
under age 50, the | 16 | | annuity as revised shall be deferred until the attainment
of | 17 | | age 50.
| 18 | | (d) Beginning January 1, 1990, every survivor's annuity | 19 | | shall be increased
(1) on each January 1 occurring on or after | 20 | | the commencement of the annuity if
the deceased member died | 21 | | while receiving a retirement annuity, or (2) in
other cases, on | 22 | | each January 1 occurring on or after the first anniversary
of | 23 | | the commencement of the annuity, by an amount equal to 3% of | 24 | | the current
amount of the annuity, including any previous | 25 | | increases under this Article.
Such increases shall apply | 26 | | without regard to whether the deceased member
was in service on |
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| 1 | | or after the effective date of this amendatory Act of
1991, but | 2 | | shall not accrue for any period prior to January 1, 1990.
| 3 | | (d-5) Notwithstanding any other provision of this Article, | 4 | | the initial survivor's annuity of a survivor of a participant | 5 | | who first becomes a participant on or after January 1, 2011 | 6 | | (the effective date of Public Act 96-889) shall be in the | 7 | | amount of 66 2/3% of the amount of the retirement annuity to | 8 | | which the participant or annuitant was entitled on the date of | 9 | | death and shall be increased (1) on each January 1 occurring on | 10 | | or after the commencement of the annuity if
the deceased member | 11 | | died while receiving a retirement annuity or (2) in
other | 12 | | cases, on each January 1 occurring on or after the first | 13 | | anniversary
of the commencement of the annuity, by an amount | 14 | | equal to 3% or the annual unadjusted percentage increase in the | 15 | | Consumer Price Index for All Urban Consumers as determined by | 16 | | the Public Pension Division of the Department of Insurance | 17 | | under subsection (a) of Section 2-108.1, whichever is less, of | 18 | | the survivor's annuity then being paid. | 19 | | (d-10) Notwithstanding any other provision of this | 20 | | Article, the initial survivor's annuity of a survivor of (i) a | 21 | | participant who is a participant on the effective date of this | 22 | | amendatory Act of the 97th General Assembly and who irrevocably | 23 | | elects the reduced benefits under this subsection (d-10) and | 24 | | (ii) a participant who first becomes a participant after the | 25 | | effective date of this amendatory Act of the 97th General | 26 | | Assembly shall be in the amount of 66 2/3% of the amount of the |
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| 1 | | retirement annuity to which the participant or annuitant was | 2 | | entitled on the date of death and shall be increased (1) on | 3 | | each January 1 occurring on or after the commencement of the | 4 | | annuity if
the deceased member died while receiving a | 5 | | retirement annuity or (2) in
other cases, on each January 1 | 6 | | occurring on or after the first anniversary
of the commencement | 7 | | of the annuity, by an amount equal to 3% or one-half the annual | 8 | | unadjusted percentage increase (but not less than zero) in the | 9 | | Consumer Price Index for All Urban Consumers as determined by | 10 | | the Public Pension Division of the Department of Insurance | 11 | | under subsection (a) of Section 2-108.1, whichever is less, of | 12 | | the originally granted survivor's annuity. | 13 | | (e) Notwithstanding any other provision of this Article, | 14 | | beginning
January 1, 1990, the minimum survivor's annuity | 15 | | payable to any person who
is entitled to receive a survivor's | 16 | | annuity under this Article shall be
$300 per month, without | 17 | | regard to whether or not the deceased participant
was in | 18 | | service on the effective date of this amendatory Act of 1989.
| 19 | | (f) In the case of a proportional survivor's annuity | 20 | | arising under
the Retirement Systems Reciprocal Act where the | 21 | | amount payable by the
System on January 1, 1993 is less than | 22 | | $300 per month, the amount payable
by the System shall be | 23 | | increased beginning on that date by a monthly amount
equal to | 24 | | $2 for each full year that has expired since the annuity began.
| 25 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| 2 | | Sec. 18-125. Retirement annuity amount.
| 3 | | (a) The annual retirement annuity for a participant who | 4 | | terminated
service as a judge prior to July 1, 1971 shall be | 5 | | based on the law in
effect at the time of termination of | 6 | | service.
| 7 | | (b) Except as provided in subsection (b-5), effective July | 8 | | 1, 1971, the retirement annuity for any participant
in service | 9 | | on or after such date shall be 3 1/2% of final average salary,
| 10 | | as defined in this Section, for each of the first 10 years of | 11 | | service, and
5% of such final average salary for each year of | 12 | | service on excess of 10.
| 13 | | For purposes of this Section, final average salary for a | 14 | | participant who first serves as a judge before August 10, 2009 | 15 | | (the effective date of Public Act 96-207) shall be:
| 16 | | (1) the average salary for the last 4 years of credited | 17 | | service as a
judge for a participant who terminates service | 18 | | before July 1, 1975.
| 19 | | (2) for a participant who terminates service after June | 20 | | 30, 1975
and before July 1, 1982, the salary on the last | 21 | | day of employment as a judge.
| 22 | | (3) for any participant who terminates service after | 23 | | June 30, 1982 and
before January 1, 1990, the average | 24 | | salary for the final year of service as
a judge.
| 25 | | (4) for a participant who terminates service on or | 26 | | after January 1,
1990 but before the effective date of this |
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| 1 | | amendatory Act of 1995, the
salary on the last day of | 2 | | employment as a judge.
| 3 | | (5) for a participant who terminates service on or | 4 | | after the effective
date of this amendatory Act of 1995, | 5 | | the salary on the last day of employment
as a judge, or the | 6 | | highest salary received by the participant for employment | 7 | | as
a judge in a position held by the participant for at | 8 | | least 4 consecutive years,
whichever is greater.
| 9 | | However, in the case of a participant who elects to | 10 | | discontinue contributions
as provided in subdivision (a)(2) of | 11 | | Section 18-133, the time of such
election shall be considered | 12 | | the last day of employment in the determination
of final | 13 | | average salary under this subsection.
| 14 | | For a participant who first serves as a judge on or after | 15 | | August 10, 2009 (the effective date of Public Act 96-207) and | 16 | | before January 1, 2011 (the effective date of Public Act | 17 | | 96-889), final average salary shall be the average monthly | 18 | | salary obtained by dividing the total salary of the participant | 19 | | during the period of: (1) the 48 consecutive months of service | 20 | | within the last 120 months of service in which the total | 21 | | compensation was the highest, or (2) the total period of | 22 | | service, if less than 48 months, by the number of months of | 23 | | service in that period. | 24 | | The maximum retirement annuity for any participant shall be | 25 | | 85% of final
average salary.
| 26 | | (b-5) Notwithstanding any other provision of this Article, |
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| 1 | | for a participant who first serves as a judge on or after | 2 | | January 1, 2011 (the effective date of Public Act 96-889), the | 3 | | annual
retirement annuity is 3% of the
participant's final | 4 | | average salary for each year of service. The maximum retirement
| 5 | | annuity payable shall be 60% of the participant's final average | 6 | | salary. | 7 | | For a participant who first serves as a judge on or after | 8 | | January 1, 2011 (the effective date of Public Act 96-889), | 9 | | final average salary shall be the average monthly salary | 10 | | obtained by dividing the total salary of the judge during the | 11 | | 96 consecutive months of service within the last 120 months of | 12 | | service in which the total salary was the highest by the number | 13 | | of months of service in that period; however, beginning January | 14 | | 1, 2011, the annual salary may not exceed $106,800, except that | 15 | | that amount shall annually thereafter be increased by the | 16 | | lesser of (i) 3% of that amount, including all previous | 17 | | adjustments, or (ii) the annual unadjusted percentage increase | 18 | | (but not less than zero) in the consumer price index-u
for the | 19 | | 12 months ending with the September preceding each November 1. | 20 | | For a participant who serves as a judge on the effective | 21 | | date of this amendatory Act of the 97th General Assembly and | 22 | | who irrevocably elects the reduced benefits under this | 23 | | paragraph and for a participant who first serves as a judge | 24 | | after the effective date of this amendatory Act of the 97th | 25 | | General Assembly, final average salary shall be the average | 26 | | monthly salary obtained by dividing the total salary of the |
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| 1 | | judge during the 96 consecutive months of service within the | 2 | | last 120 months of service in which the total salary was the | 3 | | highest by the number of months of service in that period; | 4 | | however, beginning on the effective date of this amendatory Act | 5 | | of the 97th General Assembly, the annual salary may not, for | 6 | | affected judges, exceed $106,800, except that that amount shall | 7 | | annually thereafter be increased by the lesser of (1) 3% of | 8 | | that amount, including all previous adjustments, or (2) | 9 | | one-half the annual unadjusted percentage increase (but not | 10 | | less than zero) in the consumer price index-u
for the 12 months | 11 | | ending with the September preceding each November 1. | 12 | | "Consumer price index-u" means
the index published by the | 13 | | Bureau of Labor Statistics of the United States
Department of | 14 | | Labor that measures the average change in prices of goods and
| 15 | | services purchased by all urban consumers, United States city | 16 | | average, all
items, 1982-84 = 100. The new amount resulting | 17 | | from each annual adjustment
shall be determined by the Public | 18 | | Pension Division of the Department of Insurance and made | 19 | | available to the Board by November 1st of each year. | 20 | | (c) The retirement annuity for a participant who retires | 21 | | prior to age 60
with less than 28 years of service in the | 22 | | System shall be reduced 1/2 of 1%
for each month that the | 23 | | participant's age is under 60 years at the time the
annuity | 24 | | commences. However, for a participant who retires on or after | 25 | | the
effective date of this amendatory Act of the 91st General | 26 | | Assembly, the
percentage reduction in retirement annuity |
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| 1 | | imposed under this subsection shall
be reduced by 5/12 of 1% | 2 | | for every month of service in this System in excess of
20 | 3 | | years, and therefore a participant with at least 26 years of | 4 | | service in this
System may retire at age 55 without any | 5 | | reduction in annuity.
| 6 | | The reduction in retirement annuity imposed by this | 7 | | subsection shall not
apply in the case of retirement on account | 8 | | of disability.
| 9 | | (d) Notwithstanding any other provision of this Article, | 10 | | for a participant who first serves as a judge on or after | 11 | | January 1, 2011 (the effective date of Public Act 96-889) and | 12 | | who is retiring after attaining age 62, the retirement annuity | 13 | | shall be reduced by 1/2
of 1% for each month that the | 14 | | participant's age is under age 67 at the time the annuity | 15 | | commences. | 16 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 17 | | 96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
| 18 | | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| 19 | | Sec. 18-125.1. Automatic increase in retirement annuity. A | 20 | | participant who
retires from service after June 30, 1969, | 21 | | shall, in January of the year next
following the year in which | 22 | | the first anniversary of retirement occurs, and in
January of | 23 | | each year thereafter, have the amount of his or her originally
| 24 | | granted retirement annuity increased as follows: for each year | 25 | | up to and
including 1971, 1 1/2%; for each year from 1972 |
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| 1 | | through 1979 inclusive, 2%; and
for 1980 and each year | 2 | | thereafter, 3%.
| 3 | | Notwithstanding any other provision of this Article, a | 4 | | retirement annuity for a participant who first serves as a | 5 | | judge on or after January 1, 2011 (the effective date of Public | 6 | | Act 96-889) shall be increased in January of the year next
| 7 | | following the year in which the first anniversary of retirement | 8 | | occurs, but in no event prior to age 67, and in
January of each | 9 | | year thereafter, by an amount equal to 3% or the annual | 10 | | percentage increase in the consumer price index-u as determined | 11 | | by the Public Pension Division of the Department of Insurance | 12 | | under subsection (b-5) of Section 18-125, whichever is less, of | 13 | | the retirement annuity then being paid. | 14 | | Notwithstanding any other provision of this Article, a | 15 | | retirement annuity for a participant who serves as a judge on | 16 | | the effective date of this amendatory Act of the 97th General | 17 | | Assembly and who irrevocably elects the reduced benefits under | 18 | | this paragraph and for a participant who first serves as a | 19 | | judge after the effective date of this amendatory Act of the | 20 | | 97th General Assembly shall be increased in January of the year | 21 | | next
following the year in which the first anniversary of | 22 | | retirement occurs, but in no event prior to age 67, and in
| 23 | | January of each year thereafter, by an amount equal to 3% or | 24 | | one-half the annual unadjusted percentage increase (but not | 25 | | less than zero) in the consumer price index-u as determined by | 26 | | the Public Pension Division of the Department of Insurance |
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| 1 | | under subsection (b-5) of Section 18-125, whichever is less, of | 2 | | the originally granted retirement annuity. | 3 | | This Section is not applicable to a participant who retires | 4 | | before he
or she has made contributions at the rate prescribed | 5 | | in Section 18-133 for
automatic increases for not less than the | 6 | | equivalent of one full year, unless
such a participant arranges | 7 | | to pay the system the amount required to bring
the total | 8 | | contributions for the automatic increase to the equivalent of
| 9 | | one year's contribution based upon his or her last year's | 10 | | salary.
| 11 | | This Section is applicable to all participants in service | 12 | | after June 30,
1969 unless a participant has elected, prior to | 13 | | September 1,
1969, in a written direction filed with the board | 14 | | not to be subject to
the provisions of this Section. Any | 15 | | participant in service on or after
July 1, 1992 shall have the | 16 | | option of electing prior to April 1, 1993,
in a written | 17 | | direction filed with the board, to be covered by the provisions | 18 | | of
the 1969 amendatory Act. Such participant shall be required | 19 | | to make the
aforesaid additional contributions with compound | 20 | | interest at 4% per annum.
| 21 | | Any participant who has become eligible to receive the | 22 | | maximum rate of
annuity and who resumes service as a judge | 23 | | after receiving a retirement
annuity under this Article shall | 24 | | have the amount of his or her
retirement annuity increased by | 25 | | 3% of the originally granted annuity amount
for each year of | 26 | | such resumed service, beginning in January of the year
next |
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| 1 | | following the date of such resumed service, upon subsequent
| 2 | | termination of such resumed service.
| 3 | | Beginning January 1, 1990, all automatic annual increases | 4 | | payable
under this Section shall be calculated as a percentage | 5 | | of the total annuity
payable at the time of the increase, | 6 | | including previous increases granted
under this Article.
| 7 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 8 | | (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
| 9 | | Sec. 18-128.01. Amount of survivor's annuity.
| 10 | | (a) Upon the death of
an annuitant, his or her surviving | 11 | | spouse shall be entitled to a survivor's
annuity of 66 2/3% of | 12 | | the annuity the annuitant was receiving immediately
prior to | 13 | | his or her death, inclusive of annual increases in the | 14 | | retirement
annuity to the date of death.
| 15 | | (b) Upon the death of an active participant, his or her | 16 | | surviving spouse
shall receive a survivor's annuity of 66 2/3% | 17 | | of the annuity earned by the
participant as of the date of his | 18 | | or her death, determined without regard
to whether the | 19 | | participant had attained age 60 as of that time, or 7 1/2%
of | 20 | | the last salary of the decedent, whichever is greater.
| 21 | | (c) Upon the death of a participant who had terminated | 22 | | service with at
least 10 years of service, his or her surviving | 23 | | spouse shall be entitled
to a survivor's annuity of 66 2/3% of | 24 | | the annuity earned by the deceased
participant at the date of | 25 | | death.
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| 1 | | (d) Upon the death of an annuitant, active participant, or | 2 | | participant
who had terminated service with at least 10 years | 3 | | of service, each surviving
child under the age of 18 or | 4 | | disabled as defined in Section 18-128 shall
be entitled to a | 5 | | child's annuity in an amount equal to 5% of the decedent's
| 6 | | final salary, not to exceed in total for all such children the | 7 | | greater of
20% of the decedent's last salary or 66 2/3% of the | 8 | | annuity received or
earned by the decedent as provided under | 9 | | subsections (a) and (b) of this
Section. This child's annuity | 10 | | shall be paid whether or not a survivor's
annuity was elected | 11 | | under Section 18-123.
| 12 | | (e) The changes made in the survivor's annuity provisions | 13 | | by Public Act
82-306 shall apply to the survivors of a deceased | 14 | | participant or annuitant
whose death occurs on or after August | 15 | | 21, 1981.
| 16 | | (f) Beginning January 1, 1990, every survivor's annuity | 17 | | shall be
increased
(1) on each January 1 occurring on or after | 18 | | the commencement of the annuity if
the deceased member died | 19 | | while receiving a retirement annuity, or (2) in other cases,
on | 20 | | each January 1 occurring on or after the first anniversary of
| 21 | | the commencement of the annuity, by an amount equal to 3% of | 22 | | the current
amount of the annuity, including any previous | 23 | | increases under this Article.
Such increases shall apply | 24 | | without regard to whether the deceased member
was in service on | 25 | | or after the effective date of this amendatory Act of
1991, but | 26 | | shall not accrue for any period prior to January 1, 1990.
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| 1 | | (g) Notwithstanding any other provision of this Article, | 2 | | the initial survivor's annuity for a survivor of a participant | 3 | | who first serves as a judge after January 1, 2011 (the | 4 | | effective date of Public Act 96-889) shall be in the amount of | 5 | | 66 2/3% of the annuity received or earned by the decedent, and | 6 | | shall be increased (1) on each January 1 occurring on or after | 7 | | the commencement of the annuity if
the deceased participant | 8 | | died while receiving a retirement annuity, or (2) in other | 9 | | cases,
on each January 1 occurring on or after the first | 10 | | anniversary of
the commencement of the annuity, but in no event | 11 | | prior to age 67, by an amount equal to 3% or the annual | 12 | | unadjusted percentage increase in the consumer price index-u as | 13 | | determined by the Public Pension Division of the Department of | 14 | | Insurance under subsection (b-5) of Section 18-125, whichever | 15 | | is less, of the survivor's annuity then being paid. | 16 | | (h) Notwithstanding any other provision of this Article, | 17 | | the initial survivor's annuity for (i) a participant who serves | 18 | | as a judge on the effective date of this amendatory Act of the | 19 | | 97th General Assembly and who irrevocably elects the reduced | 20 | | benefits under this subsection (h) and (ii) a survivor of a | 21 | | participant who first serves as a judge after the effective | 22 | | date of this amendatory Act of the 97th General Assembly shall | 23 | | be in the amount of 66 2/3% of the annuity received or earned | 24 | | by the decedent, and shall be increased (1) on each January 1 | 25 | | occurring on or after the commencement of the annuity if
the | 26 | | deceased participant died while receiving a retirement |
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| 1 | | annuity, or (2) in other cases,
on each January 1 occurring on | 2 | | or after the first anniversary of
the commencement of the | 3 | | annuity, but in no event prior to age 67, by an amount equal to | 4 | | 3% or one-half the annual unadjusted percentage increase (but | 5 | | not less than zero) in the consumer price index-u as determined | 6 | | by the Public Pension Division of the Department of Insurance | 7 | | under subsection (b-5) of Section 18-125, whichever is less, of | 8 | | the originally granted survivor's annuity. | 9 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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