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90_HB0069
40 ILCS 5/11-134 from Ch. 108 1/2, par. 11-134
40 ILCS 5/11-145.1 from Ch. 108 1/2, par. 11-145.1
40 ILCS 5/11-154 from Ch. 108 1/2, par. 11-154
30 ILCS 805/8.21 new
Amends the Chicago Laborer Article of the Pension Code.
Increases the minimum retirement annuity. Provides for
retirement at age 50 with 30 years of service. Eliminates
the age discount for employees who retire at age 55 with 25
years of service. Increases the minimum widow's annuity and
allows certain widows to elect to receive 50% of the deceased
employee's retirement annuity instead of a widow's annuity.
Increases the child's annuity and removes the combined family
maximum for certain persons currently eligible for child's
annuities. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
LRB9000181EGsb
LRB9000181EGsb
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 11-134, 11-145.1, and 11-154 and to amend the State
3 Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 11-134 , 11-145.1, and 8-154 as follows:
8 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
9 Sec. 11-134. Minimum annuities.
10 (a) An employee whose withdrawal occurs after July 1,
11 1957 at age 60 or over, with 20 or more years of service, (as
12 service is defined or computed in Section 11-216), for whom
13 the age and service and prior service annuity combined is
14 less than the amount stated in this section, shall, from and
15 after the date of withdrawal, in lieu of all annuities
16 otherwise provided in this Article, be entitled to receive an
17 annuity for life of an amount equal to 1 2/3% for each year
18 of service, of the highest average annual salary for any 5
19 consecutive years within the last 10 years of service
20 immediately preceding the date of withdrawal; provided, that
21 in the case of any employee who withdraws on or after July 1,
22 1971, such employee age 60 or over with 20 or more years of
23 service, shall be entitled to instead receive an annuity for
24 life equal to 1.67% for each of the first 10 years of
25 service; 1.90% for each of the next 10 years of service;
26 2.10% for each year of service in excess of 20 but not
27 exceeding 30; and 2.30% for each year of service in excess of
28 30, based on the highest average annual salary for any 4
29 consecutive years within the last 10 years of service
30 immediately preceding the date of withdrawal.
31 An employee who withdraws after July 1, 1957 and before
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1 January 1, 1988, with 20 or more years of service, before age
2 60, shall be entitled to an annuity, to begin not earlier
3 than age 55, if under such age at withdrawal, as computed in
4 the last preceding paragraph, reduced 0.25% if the employee
5 was born before January 1, 1936, or 0.5% if the employee was
6 born on or after January 1, 1936, for each full month or
7 fractional part thereof that his attained age when such
8 annuity is to begin is less than 60.
9 Any employee born before January 1, 1936 who withdraws
10 with 20 or more years of service, and any employee with 20 or
11 more years of service who withdraws on or after January 1,
12 1988, may elect to receive, in lieu of any other employee
13 annuity provided in this Section, an annuity for life equal
14 to 1.80% for each of the first 10 years of service, 2.00% for
15 each of the next 10 years of service, 2.20% for each year of
16 service in excess of 20, but not exceeding 30, and 2.40% for
17 each year of service in excess of 30, of the highest average
18 annual salary for any 4 consecutive years within the last 10
19 years of service immediately preceding the date of
20 withdrawal, to begin not earlier than upon attained age of 55
21 years, if under such age at withdrawal, reduced 0.25% for
22 each full month or fractional part thereof that his attained
23 age when annuity is to begin is less than 60; except that an
24 employee retiring on or after January 1, 1988, at age 55 or
25 over but less than age 60, having at least 35 years of
26 service, or an employee retiring on or after July 1, 1990, at
27 age 55 or over but less than age 60, having at least 30 years
28 of service, or an employee retiring on or after the effective
29 date of this amendatory Act of 1997, at age 55 or over but
30 less than age 60, having at least 25 years of service, shall
31 not be subject to the reduction in retirement annuity because
32 of retirement below age 60.
33 However, in the case of an employee who retired on or
34 after January 1, 1985 but before January 1, 1988, at age 55
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1 or older and with at least 35 years of service, and who was
2 subject under this subsection (a) to the reduction in
3 retirement annuity because of retirement below age 60, that
4 reduction shall cease to be effective January 1, 1991, and
5 the retirement annuity shall be recalculated accordingly.
6 Any employee who withdraws on or after July 1, 1990, with
7 20 or more years of service, may elect to receive, in lieu of
8 any other employee annuity provided in this Section, an
9 annuity for life equal to 2.20% for each year of service of
10 the highest average annual salary for any 4 consecutive years
11 within the last 10 years of service immediately preceding the
12 date of withdrawal, to begin not earlier than upon attained
13 age of 55 years, if under such age at withdrawal, reduced
14 0.25% for each full month or fractional part thereof that his
15 attained age when annuity is to begin is less than 60; except
16 that an employee retiring at age 55 or over but less than age
17 60, having at least 30 years of service, shall not be subject
18 to the reduction in retirement annuity because of retirement
19 below age 60.
20 Any employee who withdraws on or after the effective date
21 of this amendatory Act of 1997 with 20 or more years of
22 service may elect to receive, in lieu of any other employee
23 annuity provided in this Section, an annuity for life equal
24 to 2.20%, for each year of service, of the highest average
25 annual salary for any 4 consecutive years within the last 10
26 years of service immediately preceding the date of
27 withdrawal, to begin not earlier than upon attainment of age
28 55 (age 50 if the employee has at least 30 years of service),
29 reduced 0.25% for each full month or remaining fractional
30 part thereof that the employee's attained age when annuity is
31 to begin is less than 60; except that an employee retiring at
32 age 50 or over with at least 30 years of service or at age 55
33 or over with at least 25 years of service shall not be
34 subject to the reduction in retirement annuity because of
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1 retirement below age 60.
2 The maximum annuity payable under this paragraph (a) of
3 this Section shall not exceed 70% of highest average annual
4 salary in the case of an employee who withdraws prior to July
5 1, 1971, and 75% if withdrawal takes place on or after July
6 1, 1971. For the purpose of the minimum annuity provided in
7 said paragraphs $1,500 shall be considered the minimum annual
8 salary for any year; and the maximum annual salary to be
9 considered for the computation of such annuity shall be
10 $4,800 for any year prior to 1953, $6,000 for the years 1953
11 to 1956, inclusive, and the actual annual salary, as salary
12 is defined in this Article, for any year thereafter.
13 (b) For an employee receiving disability benefit, his
14 salary for annuity purposes under this section shall, for all
15 periods of disability benefit subsequent to the year 1956, be
16 the amount on which his disability benefit was based.
17 (c) An employee with 20 or more years of service, whose
18 entire disability benefit credit period expires prior to
19 attainment of age 55 while still disabled for service, shall
20 be entitled upon withdrawal to the larger of (1) the minimum
21 annuity provided above assuming that he is then age 55, and
22 reducing such annuity to its actuarial equivalent at his
23 attained age on such date, or (2) the annuity provided from
24 his age and service and prior service annuity credits.
25 (d) The minimum annuity provisions as aforesaid shall
26 not apply to any former employee receiving an annuity from
27 the fund, and who re-enters service as an employee, unless he
28 renders at least 3 years of additional service after the date
29 of re-entry.
30 (e) An employee in service on July 1, 1947, or who
31 became a contributor after July 1, 1947 and prior to July 1,
32 1950, or who shall become a contributor to the fund after
33 July 1, 1950 prior to attainment of age 70, who withdraws
34 after age 65 with less than 20 years of service, for whom the
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1 annuity has been fixed under the foregoing sections of this
2 Article shall, in lieu of the annuity so fixed, receive an
3 annuity as follows:
4 Such amount as he could have received had the accumulated
5 amounts for annuity been improved with interest at the
6 effective rate to the date of his withdrawal, or to
7 attainment of age 70, whichever is earlier, and had the city
8 contributed to such earlier date for age and service annuity
9 the amount that would have been contributed had he been under
10 age 65, after the date his annuity was fixed in accordance
11 with this Article, and assuming his annuity were computed
12 from such accumulations as of his age on such earlier date.
13 The annuity so computed shall not exceed the annuity which
14 would be payable under the other provisions of this section
15 if the employee was credited with 20 years of service and
16 would qualify for annuity thereunder.
17 (f) In lieu of the annuity provided in this or in any
18 other section of this Article, an employee having attained
19 age 65 with at least 15 years of service who withdraws from
20 service on or after July 1, 1971 and whose annuity computed
21 under other provisions of this Article is less than the
22 amount provided under this paragraph shall be entitled to
23 receive a minimum annual annuity for life equal to 1% of the
24 highest average annual salary for any 4 consecutive years
25 within the last 10 years of service immediately preceding
26 retirement for each year of his service plus the sum of $25
27 for each year of service. Such annual annuity shall not
28 exceed the maximum percentages stated under paragraph (a) of
29 this Section of such highest average annual salary.
30 (g) Any annuity payable under the preceding subsections
31 of this Section 11-134 shall be paid in equal monthly
32 installments.
33 (h) The amendatory provisions of part (a) and (f) of
34 this Section shall be effective July 1, 1971 and apply in the
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1 case of every qualifying employee withdrawing on or after
2 July 1, 1971.
3 (i) The amendatory provisions of this amendatory Act of
4 1985 relating to the discount of annuity because of
5 retirement prior to attainment of age 60 and increasing the
6 retirement formula for those born before January 1, 1936,
7 shall apply only to qualifying employees withdrawing on or
8 after August 16, 1985.
9 (j) Beginning on the effective date of this amendatory
10 Act of 1997 January 1, 1991, the minimum amount of employee's
11 annuity shall be $550 $350 per month for life for the
12 following classes of employees, without regard to the fact
13 that withdrawal occurred prior to the effective date of this
14 amendatory Act of 1997 January 1, 1991:
15 (1) any employee annuitant alive and receiving a
16 life annuity on the effective date of this amendatory Act
17 of 1997 January 1, 1991, except a reciprocal annuity;
18 (2) any employee annuitant alive and receiving a
19 term annuity on the effective date of this amendatory Act
20 of 1997 January 1, 1991, except a reciprocal annuity;
21 (3) any employee annuitant alive and receiving a
22 reciprocal annuity on the effective date of this
23 amendatory Act of 1997 January 1, 1991, whose service in
24 this fund is at least 5 years;
25 (4) any employee annuitant withdrawing after age 60
26 on or after the effective date of this amendatory Act of
27 1997 January 1, 1991, with at least 10 years of service
28 in this fund.
29 The increases granted under items (1), (2) and (3) of
30 this subsection (j) shall not be limited by any other Section
31 of this Act.
32 (Source: P.A. 85-964; 86-1488.)
33 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
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1 Sec. 11-145.1. Minimum annuities for widows. The widow
2 otherwise eligible for widow's annuity under other Sections
3 of this Article 11, of an employee hereinafter described, who
4 retires from service or dies while in the service subsequent
5 to the effective date of this amendatory provision, and for
6 which widow the amount of widow's annuity and widow's prior
7 service annuity combined, fixed or provided for such widow
8 under other provisions of said Article 11 is less than the
9 amount hereinafter provided in this section, shall, from and
10 after the date her otherwise provided annuity would begin, in
11 lieu of such otherwise provided widow's and widow's prior
12 service annuity, be entitled to the following indicated
13 amount of annuity:
14 (a) The widow of any employee who dies while in service
15 on or after the date on which he attains age 60 if the death
16 occurs before July 1, 1990, or on or after the date on which
17 he attains age 55 if the death occurs on or after July 1,
18 1990, with at least 20 years of service, or on or after the
19 date on which he attains age 50 if the death occurs on or
20 after the effective date of this amendatory Act of 1997 with
21 at least 30 years of service, shall be entitled to an annuity
22 equal to one-half of the amount of annuity which her deceased
23 husband would have been entitled to receive had he withdrawn
24 from the service on the day immediately preceding the date of
25 his death, conditional upon such widow having attained age 60
26 on or before such date if the death occurs before July 1,
27 1990, or age 55 if the death occurs on or after July 1, 1990.
28 The widow's annuity shall not, however, exceed the sum of
29 $500 a month if the employee's death in service occurs before
30 January 23, 1987. The widow's annuity shall not be limited
31 to a maximum dollar amount if the employee's death in service
32 occurs on or after January 23, 1987.
33 If the employee dies in service before July 1, 1990, and
34 if such widow of such described employee shall not be 60 or
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1 more years of age on such date of death, the amount provided
2 in the immediately preceding paragraph for a widow 60 or more
3 years of age, shall, in the case of such younger widow, be
4 reduced by 0.25% for each month that her then attained age is
5 less than 60 years if the employee was born before January 1,
6 1936, or dies in service on or after January 1, 1988, or 0.5%
7 for each month that her then attained age is less than 60
8 years if the employee was born on or after January 1, 1936
9 and dies in service before January 1, 1988.
10 If the employee dies in service on or after July 1, 1990,
11 and if the widow of the employee has not attained age 55 on
12 or before the employee's date of death, the amount otherwise
13 provided in this subsection (a) shall be reduced by 0.25% for
14 each month that her then attained age is less than 55 years.
15 (b) The widow of any employee who dies subsequent to the
16 date of his retirement on annuity, and who so retired on or
17 after the date on which he attained age 60 if retirement
18 occurs before July 1, 1990, or on or after the date on which
19 he attained age 55 if retirement occurs on or after July 1,
20 1990, with at least 20 years of service, or on or after the
21 date on which he attained age 50 if the retirement occurs on
22 or after the effective date of this amendatory Act of 1997
23 with at least 30 years of service, shall be entitled to an
24 annuity equal to one-half of the amount of annuity which her
25 deceased husband received as of the date of his retirement on
26 annuity, conditional upon such widow having attained age 60
27 on or before the date of her husband's retirement on annuity
28 if retirement occurs before July 1, 1990, or age 55 if
29 retirement occurs on or after July 1, 1990. Such amount of
30 widow's annuity shall not, however, exceed the sum of $500 a
31 month if the employee's death occurs before January 23, 1987.
32 The widow's annuity shall not be limited to a maximum dollar
33 amount if the employee's death occurs on or after January 23,
34 1987, regardless of the date of retirement; provided that, if
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1 retirement was before January 23, 1987, the employee or
2 eligible spouse repays the excess spouse refund with interest
3 at the effective rate from the date of refund to the date of
4 repayment.
5 If the date of the employee's retirement on annuity is
6 before July 1, 1990, and if such widow of such described
7 employee shall not have attained such age of 60 or more years
8 on such date of her husband's retirement on annuity, the
9 amount provided in the immediately preceding paragraph for a
10 widow 60 or more years of age on the date of her husband's
11 retirement on annuity, shall, in the case of such then
12 younger widow, be reduced by 0.25% for each month that her
13 then attained age was less than 60 years if the employee was
14 born before January 1, 1936, or withdraws from service on or
15 after January 1, 1988, or 0.5% for each month that her then
16 attained age was less than 60 years if the employee was born
17 on or after January 1, 1936 and withdraws from service before
18 January 1, 1988.
19 If the date of the employee's retirement on annuity is on
20 or after July 1, 1990, and if the widow of the employee has
21 not attained age 55 by the date of the employee's retirement
22 on annuity, the amount otherwise provided in this subsection
23 (b) shall be reduced by 0.25% for each month that her then
24 attained age is less than 55 years.
25 (c) The foregoing provisions relating to minimum
26 annuities for widows shall not apply to the widow of any
27 former employee receiving an annuity from the fund on August
28 2, 1965 or on the effective date of this amendatory
29 provision, who re-enters service as a former employee, unless
30 such employee renders at least 3 years of additional service
31 after the date of re-entry.
32 (d) The amendatory provisions of part (a) and (b) of
33 this Section (increasing the maximum from $300 to $400 a
34 month) shall be effective as of July 1, 1971, and apply in
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1 the case of every qualifying widow whose husband dies while
2 in service on or after July 1, 1971 and prior to January 1,
3 1984, or withdraws and enters on annuity on or after July 1,
4 1971 and prior to January 1, 1984.
5 (e) The changes made in parts (a) and (b) of this
6 Section by this amendatory Act of 1983 (increasing the
7 maximum from $400 to $500 per month) shall apply to every
8 qualifying widow whose husband dies in the service on or
9 after January 1, 1984, or withdraws and enters on annuity on
10 or after January 1, 1984.
11 (f) The amendments to this Section by this amendatory
12 Act of 1985, relating to changing the discount because of age
13 from 1/2 of 1% to 0.25% per month for widows of employees
14 born before January 1, 1936, shall apply only to qualifying
15 widows whose husbands die while in the service on or after
16 August 16, 1985 or withdraw and enter on annuity on or after
17 August 16, 1985.
18 (g) Beginning on the effective date of this amendatory
19 Act of 1997 January 1, 1991, the minimum amount of widow's
20 annuity shall be $500 $300 per month for life for the
21 following classes of widows, without regard to the fact that
22 the death of the employee occurred prior to the effective
23 date of this amendatory Act of 1997 January 1, 1991:
24 (1) any widow annuitant alive and receiving a term
25 annuity on the effective date of this amendatory Act of
26 1997 January 1, 1991, except a reciprocal annuity;
27 (2) any widow annuitant alive and receiving a life
28 annuity on the effective date of this amendatory Act of
29 1997 January 1, 1991, except a reciprocal annuity;
30 (3) any widow annuitant alive and receiving a
31 reciprocal annuity on the effective date of this
32 amendatory Act of 1997 January 1, 1991, whose employee
33 spouse's service in this fund was at least 5 years;
34 (4) the widow of an employee with at least 10 years
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1 of service in this fund who dies after retirement, if the
2 retirement occurred prior to the effective date of this
3 amendatory Act of 1997 January 1, 1991;
4 (5) the widow of an employee with at least 10 years
5 of service in this fund who dies after retirement, if
6 withdrawal occurs on or after the effective date of this
7 amendatory Act of 1997 January 1, 1991;
8 (6) the widow of an employee who dies in service
9 with at least 5 years of service in this fund, if the
10 death in service occurs on or after the effective date of
11 this amendatory Act of 1997 January 1, 1991.
12 The increases granted under items (1), (2), (3) and (4)
13 of this subsection (g) shall not be limited by any other
14 Section of this Act.
15 (h) The widow of an employee who retired or died in
16 service on or after January 1, 1985 and before July 1, 1990,
17 at age 55 or older, and with at least 35 years of service
18 credit, shall be entitled to have her widow's annuity
19 increased, effective January 1, 1991, to an amount equal to
20 50% of the retirement annuity that the deceased employee
21 received on the date of retirement, or would have been
22 eligible to receive if he had retired on the day preceding
23 the date of his death in service, provided that if the widow
24 had not attained age 60 by the date of the employee's
25 retirement or death in service, the amount of the annuity
26 shall be reduced by 0.25% for each month that her then
27 attained age was less than age 60 if the employee's
28 retirement or death in service occurred on or after January
29 1, 1988, or by 0.5% for each month that her attained age is
30 less than age 60 if the employee's retirement or death in
31 service occurred prior to January 1, 1988. However, in cases
32 where a refund of excess contributions for widow's annuity
33 has been paid by the Fund, the increase in benefit provided
34 by this subsection (h) (i) shall be contingent upon repayment
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1 of the refund to the Fund with interest at the effective rate
2 from the date of refund to the date of payment.
3 (i) If a deceased employee is receiving a retirement
4 annuity at the time of death and that death occurs on or
5 after the effective date of this amendatory Act of 1997, the
6 widow may elect to receive, in lieu of any other annuity
7 provided under this Article, 50% of the deceased employee's
8 retirement annuity at the time of death reduced by 0.25% for
9 each month that the widow's age on the date of death is less
10 than 55. However, in cases where a refund of excess
11 contributions for widow's annuity has been paid by the Fund,
12 the benefit provided by this subsection (i) is contingent
13 upon repayment of the refund to the Fund with interest at the
14 effective rate from the date of refund to the date of
15 payment.
16 (Source: P.A. 85-964; 86-1488.)
17 (40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
18 Sec. 11-154. Amount of child's annuity. Beginning on
19 the effective date of this amendatory Act of 1997 January 1,
20 1988, the amount of a child's annuity shall be $220 $120 per
21 month for each child while the spouse of the deceased
22 employee parent survives, and $250 $150 per month for each
23 child when no such spouse survives, and shall be subject to
24 the following limitations:
25 (1) If the combined annuities for the widow and children
26 of an employee whose death resulted from injury incurred in
27 the performance of duty, or for the children where a widow
28 does not exist, exceed 70% of the employee's final monthly
29 salary, the annuity for each child shall be reduced pro rata
30 so that the combined annuities for the family shall not
31 exceed such limitation;
32 (2) For the family of an employee whose death is the
33 result of any cause other than injury incurred in the
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1 performance of duty, in which the combined annuities for the
2 family exceed 60% of the employee's final monthly salary, the
3 annuity for each child shall be reduced pro rata so that the
4 combined annuities for the family shall not exceed such
5 limitation.
6 A child's annuity shall be paid to the parent who is
7 providing for the child, unless another person has been
8 appointed the child's legal guardian.
9 The increase in child's annuity provided by this
10 amendatory Act of 1997 1987 shall apply to all child's
11 annuities being paid on or after the effective date of this
12 amendatory Act of 1997. January 1, 1988, subject to The above
13 limitations on the combined annuities for a family in parts
14 (1) and (2) of this Section do not apply to families of
15 employees who died before the effective date of this
16 amendatory Act of 1997.
17 (Source: P.A. 85-964.)
18 Section 90. The State Mandates Act is amended by adding
19 Section 8.21 as follows:
20 (30 ILCS 805/8.21 new)
21 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
22 and 8 of this Act, no reimbursement by the State is required
23 for the implementation of any mandate created by this
24 amendatory Act of 1997.
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.