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90_SB0667eng
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
Amends the Universities Article of the Pension Code. In
a Section on retirement annuities, corrects an incorrect
cross reference. Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by changing
2 Section 15-136.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 15-136 as follows:
7 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
8 Sec. 15-136. Retirement annuities - Amount.
9 (a) The amount of the retirement annuity shall be
10 determined by whichever of the following rules is applicable
11 and provides the largest annuity:
12 Rule 1: The retirement annuity shall be 1.67% of final
13 rate of earnings for each of the first 10 years of service,
14 1.90% for each of the next 10 years of service, 2.10% for
15 each year of service in excess of 20 but not exceeding 30,
16 and 2.30% for each year in excess of 30.
17 Rule 2: The retirement annuity shall be the sum of the
18 following, determined from amounts credited to the
19 participant in accordance with the actuarial tables and the
20 prescribed rate of interest in effect at the time the
21 retirement annuity begins:
22 (i) The normal annuity which can be provided on an
23 actuarial equivalent basis, by the accumulated normal
24 contributions as of the date the annuity begins; and
25 (ii) an annuity from employer contributions of an
26 amount which can be provided on an actuarially equivalent
27 basis from the accumulated normal contributions made by
28 the participant under Section 15-113.6 and Section
29 15-113.7 plus 1.4 times all other accumulated normal
30 contributions made by the participant.
31 Rule 3: The retirement annuity of a participant who is
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1 employed at least one-half time during the period on which
2 his or her final rate of earnings is based, shall be equal to
3 the participant's years of service not to exceed 30,
4 multiplied by (1) $96 if the participant's final rate of
5 earnings is less than $3,500, (2) $108 if the final rate of
6 earnings is at least $3,500 but less than $4,500, (3) $120 if
7 the final rate of earnings is at least $4,500 but less than
8 $5,500, (4) $132 if the final rate of earnings is at least
9 $5,500 but less than $6,500, (5) $144 if the final rate of
10 earnings is at least $6,500 but less than $7,500, (6) $156 if
11 the final rate of earnings is at least $7,500 but less than
12 $8,500, (7) $168 if the final rate of earnings is at least
13 $8,500 but less than $9,500, and (8) $180 if the final rate
14 of earnings is $9,500 or more.
15 Rule 4: A participant who is at least age 50 and has 25
16 or more years of service as a police officer or firefighter,
17 and a participant who is age 55 or over and has at least 20
18 but less than 25 years of service as a police officer or
19 firefighter, shall be entitled to a retirement annuity of 2
20 1/4% of the final rate of earnings for each of the first 10
21 years of service as a police officer or firefighter, 2 1/2%
22 for each of the next 10 years of service as a police officer
23 or firefighter, and 2 3/4% for each year of service as a
24 police officer or firefighter in excess of 20. The
25 retirement annuity for all other service shall be computed
26 under Rule 1.
27 (b) The retirement annuity provided under Rules 1 and 3
28 above shall be reduced by 1/2 of 1% for each month the
29 participant is under age 60 at the time of retirement.
30 However, this reduction shall not apply in the following
31 cases:
32 (1) For a disabled participant whose disability
33 benefits have been discontinued because he or she has
34 exhausted eligibility for disability benefits under
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1 clause (6) (5) of Section 15-152;
2 (2) For a participant who has at least 35 years of
3 service; or
4 (3) For that portion of a retirement annuity which
5 has been provided on account of service of the
6 participant during periods when he or she performed the
7 duties of a police officer or firefighter, if these
8 duties were performed for at least 5 years immediately
9 preceding the date the retirement annuity is to begin.
10 (c) The maximum retirement annuity provided under Rules
11 1, 2, and 4 shall be the lesser of (1) the annual limit of
12 benefits as specified in Section 415 of the Internal Revenue
13 Code of 1986, as such Section may be amended from time to
14 time and as such benefit limits shall be adjusted by the
15 Commissioner of Internal Revenue, and (2) 75% of final rate
16 of earnings; however, this limitation of 75% of final rate of
17 earnings shall not apply to a person who is a participant or
18 annuitant on September 15, 1977 if it results in a retirement
19 annuity less than that which is payable to the annuitant or
20 which would have been payable to the participant under the
21 provisions of this Article in effect on June 30, 1977.
22 (d) An annuitant whose status as an employee terminates
23 after August 14, 1969 shall receive automatic increases in
24 his or her retirement annuity as follows:
25 Effective January 1 immediately following the date the
26 retirement annuity begins, the annuitant shall receive an
27 increase in his or her monthly retirement annuity of 0.125%
28 of the monthly retirement annuity provided under Rule 1, Rule
29 2, Rule 3, or Rule 4, contained in this Section, multiplied
30 by the number of full months which elapsed from the date the
31 retirement annuity payments began to January 1, 1972, plus
32 0.1667% of such annuity, multiplied by the number of full
33 months which elapsed from January 1, 1972, or the date the
34 retirement annuity payments began, whichever is later, to
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1 January 1, 1978, plus 0.25% of such annuity multiplied by the
2 number of full months which elapsed from January 1, 1978, or
3 the date the retirement annuity payments began, whichever is
4 later, to the effective date of the increase.
5 The annuitant shall receive an increase in his or her
6 monthly retirement annuity on each January 1 thereafter
7 during the annuitant's life of 3% of the monthly annuity
8 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
9 this Section. The change made under this subsection by P.A.
10 81-970 is effective January 1, 1980 and applies to each
11 annuitant whose status as an employee terminates before or
12 after that date.
13 Beginning January 1, 1990, all automatic annual increases
14 payable under this Section shall be calculated as a
15 percentage of the total annuity payable at the time of the
16 increase, including all increases previously granted under
17 this Article.
18 The change made in this subsection by P.A. 85-1008 is
19 effective January 26, 1988, and is applicable without regard
20 to whether status as an employee terminated before that date.
21 (e) If, on January 1, 1987, or the date the retirement
22 annuity payment period begins, whichever is later, the sum of
23 the retirement annuity provided under Rule 1 or Rule 2 of
24 this Section and the automatic annual increases provided
25 under the preceding subsection or Section 15-136.1, amounts
26 to less than the retirement annuity which would be provided
27 by Rule 3, the retirement annuity shall be increased as of
28 January 1, 1987, or the date the retirement annuity payment
29 period begins, whichever is later, to the amount which would
30 be provided by Rule 3 of this Section. Such increased amount
31 shall be considered as the retirement annuity in determining
32 benefits provided under other Sections of this Article. This
33 paragraph applies without regard to whether status as an
34 employee terminated before the effective date of this
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1 amendatory Act of 1987, provided that the annuitant was
2 employed at least one-half time during the period on which
3 the final rate of earnings was based.
4 (f) A participant is entitled to such additional annuity
5 as may be provided on an actuarial equivalent basis, by any
6 accumulated additional contributions to his or her credit.
7 However, the additional contributions made by the participant
8 toward the automatic increases in annuity provided under this
9 Section shall not be taken into account in determining the
10 amount of such additional annuity.
11 (g) If, (1) by law, a function of a governmental unit,
12 as defined by Section 20-107 of this Code, is transferred in
13 whole or in part to an employer, and (2) a participant
14 transfers employment from such governmental unit to such
15 employer within 6 months after the transfer of the function,
16 and (3) the sum of (A) the annuity payable to the participant
17 under Rule 1, 2, or 3 of this Section (B) all proportional
18 annuities payable to the participant by all other retirement
19 systems covered by Article 20, and (C) the initial primary
20 insurance amount to which the participant is entitled under
21 the Social Security Act, is less than the retirement annuity
22 which would have been payable if all of the participant's
23 pension credits validated under Section 20-109 had been
24 validated under this system, a supplemental annuity equal to
25 the difference in such amounts shall be payable to the
26 participant.
27 (h) On January 1, 1981, an annuitant who was receiving a
28 retirement annuity on or before January 1, 1971 shall have
29 his or her retirement annuity then being paid increased $1
30 per month for each year of creditable service. On January 1,
31 1982, an annuitant whose retirement annuity began on or
32 before January 1, 1977, shall have his or her retirement
33 annuity then being paid increased $1 per month for each year
34 of creditable service.
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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. 86-272; 86-273; 86-1028; revised 5-17-96.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.