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92_HB0965
LRB9202148EGfg
1 AN ACT in relation to 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
5 changing Sections 7-142, 7-144.2, 7-144.3, 7-152, and 7-156
6 as follows:
7 (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
8 Sec. 7-142. Retirement annuities - Amount.
9 (a) The amount of a retirement annuity shall be the sum
10 of the following, determined in accordance with the actuarial
11 tables in effect at the time of the grant of the annuity:
12 1. For employees with 8 or more years of service,
13 an annuity computed pursuant to subparagraphs a or b of
14 this subparagraph 1, whichever is the higher, and for
15 employees with less than 8 years of service the annuity
16 computed pursuant to subparagraph a:
17 a. The monthly annuity which can be provided
18 from the total accumulated normal, municipality and
19 prior service credits, as of the attained age of the
20 employee on the date the annuity begins provided
21 that such annuity shall not exceed 75% of the final
22 rate of earnings of the employee.
23 b. (i) The monthly annuity amount determined
24 as follows by multiplying (a) 1 2/3% for annuitants
25 with not more than 15 years or (b) 1 2/3% for the
26 first 15 years and 2% for each year in excess of 15
27 years for annuitants with more than 15 years by the
28 number of years plus fractional years, prorated on a
29 basis of months, of creditable service and multiply
30 the product thereof by the employee's final rate of
31 earnings.
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1 (ii) For the sole purpose of computing the
2 formula (and not for the purposes of the limitations
3 hereinafter stated) $125 shall be considered the
4 final rate of earnings in all cases where the final
5 rate of earnings is less than such amount.
6 (iii) The monthly annuity computed in
7 accordance with this subparagraph b, shall not
8 exceed an amount equal to 75% of the final rate of
9 earnings.
10 (iv) For employees who have less than 35 years
11 of service, the annuity computed in accordance with
12 this subparagraph b (as reduced by application of
13 subparagraph (iii) above) shall be reduced by 0.25%
14 thereof (0.5% if service was terminated before
15 January 1, 1988) for each month or fraction thereof
16 (1) that the employee's age is less than 60 years,
17 or (2) if the employee has at least 30 years of
18 service credit, that the employee's service credit
19 is less than 35 years, whichever is less, on the
20 date the annuity begins.
21 2. The annuity which can be provided from the total
22 accumulated additional credits as of the attained age of
23 the employee on the date the annuity begins.
24 (b) If payment of an annuity begins prior to the
25 earliest age at which the employee will become eligible for
26 an old age insurance benefit under the Federal Social
27 Security Act, he may elect that the annuity payments from
28 this fund shall exceed those payable after his attaining such
29 age by an amount, computed as determined by rules of the
30 Board, but not in excess of his estimated Social Security
31 Benefit, determined as of the effective date of the annuity,
32 provided that in no case shall the total annuity payments
33 made by this fund exceed in actuarial value the annuity which
34 would have been payable had no such election been made.
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1 (c) The retirement annuity shall be increased each year
2 by 2%, not compounded, of the monthly amount of annuity,
3 taking into consideration any adjustment under paragraph (b)
4 of this Section. This increase shall be effective each
5 January 1 and computed from the effective date of the
6 retirement annuity, the first increase being 0.167% .167% of
7 the monthly amount times the number of months from the
8 effective date to January 1. Beginning January 1, 1984 and
9 until January 1, 2002 thereafter, the retirement annuity
10 shall be increased by 3% each year, not compounded.
11 Beginning January 1, 2002, the retirement annuity shall be
12 increased each year by 3% of the total amount of the annuity
13 then payable, including any increases previously granted
14 under this Article.
15 This increase shall not be applicable to annuitants who
16 are not in service on or after September 8, 1971.
17 (Source: P.A. 91-357, eff. 7-29-99.)
18 (40 ILCS 5/7-144.2) (from Ch. 108 1/2, par. 7-144.2)
19 Sec. 7-144.2. Incremental retirement annuity. Each
20 employee annuitant who terminated service prior to the
21 effective date of this amendatory Act of 1971 is entitled to
22 receive a monthly incremental retirement annuity, effective
23 January 1, 1972, of 0.167% .167% of his monthly retirement
24 annuity amount, multiplied by the number of months from the
25 effective date of his annuity to January 1, 1972. This
26 monthly incremental annuity shall be increased on each
27 January 1 thereafter during the lifetime of the annuitant by
28 2% of the monthly retirement annuity amount. Beginning
29 January 1, 1984 and each January 1 thereafter, the monthly
30 incremental annuity shall be increased by 3% of the monthly
31 retirement annuity amount.
32 The incremental annuity is payable only if the annuitant
33 agrees to pay the fund an amount equal to 1% of 1/12 of his
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1 annual final rate of earnings, determined as of the date of
2 his retirement, multiplied by the number of full years of
3 service. The annuitant, prior to December 1, 1971, may
4 authorize the fund to deduct the payment from his annuity if
5 the total payment can be deducted in one month. If the
6 agreement or payment is received by the fund prior to
7 December 1, 1971, the incremental annuity shall be effective
8 January 1, 1972. If the agreement or payment is not received
9 before December 1, 1971, the incremental annuity shall be
10 effective the first day of the next month after receipt of
11 payment by the fund, but if received after the 15th day, the
12 first day of the month following the next month, and shall
13 not be paid retroactively.
14 Until January 1, 2002, the monthly retirement annuity
15 amount, for the purpose of this Section, shall be the annuity
16 amount initially awarded or, if adjusted under paragraph (b)
17 of Section 7-142, the adjusted amount, disregarding any
18 incremental annuities previously granted. Beginning January
19 1, 2002, "monthly retirement annuity amount", for the purpose
20 of this Section, means the total amount of monthly retirement
21 annuity and incremental annuity then payable, including any
22 increases previously granted under this Article.
23 (Source: P.A. 83-664.)
24 (40 ILCS 5/7-144.3) (from Ch. 108 1/2, par. 7-144.3)
25 Sec. 7-144.3. Supplemental benefit payment.
26 (a) A supplemental benefit payment, consisting of a sum
27 calculated as provided in subsection (c), shall be payable to
28 each eligible retirement annuitant and surviving spouse
29 annuitant on July 1, 1993, and on each subsequent July 1
30 through July 1, 2001; except that if this Code is amended to
31 change the uncompounded annual increase in retirement annuity
32 granted in subsection (c) of Section 7-142 to a compounded
33 annual increase, no supplemental benefit shall be paid under
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1 this Section on any July 1 occurring on or after the
2 effective date of that amendment. The amount of the
3 supplemental benefit payment, and a person's eligibility to
4 receive the supplemental benefit payment, shall be
5 redetermined for each year in which the benefit is payable.
6 (b) To be eligible to receive a supplemental benefit
7 payment, a person must be entitled to receive a retirement
8 annuity or surviving spouse annuity from the Fund on the July
9 1 supplemental benefit payment date, and must have been
10 receiving that annuity during each of the 12 months
11 immediately preceding that date; except that a surviving
12 spouse annuitant whose surviving spouse annuity began less
13 than one year before the July 1 supplemental benefit payment
14 date shall be eligible if the deceased spouse received a
15 retirement annuity from the Fund during the period from the
16 previous July 1 until the start of the surviving spouse
17 annuity.
18 (c) The amount of the supplemental benefit payment shall
19 be determined by the Board as follows:
20 (1) The total amount available for the payment of
21 supplemental benefit payments under this Section in any
22 year shall be 0.62% of the last annual participating
23 payroll for all participating municipalities and
24 participating instrumentalities in the Fund, as
25 determined and reconciled by the Fund.
26 (2) The amount of the supplemental benefit payment
27 to each eligible person shall be a portion of the total
28 amount available under paragraph (1), equal to that
29 portion of the total amount payable by the Fund to all
30 eligible persons for retirement and surviving spouse
31 annuities in the June preceding the July 1 supplemental
32 benefit payment date, that is payable to the eligible
33 person in that month.
34 (3) Notwithstanding paragraph (2), the amount of
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1 any supplemental benefit payment paid to an annuitant
2 under this Section shall not exceed any benefit
3 limitations established by the federal government for
4 qualified public pension plans.
5 (Source: P.A. 87-850.)
6 (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
7 Sec. 7-152. Disability benefits - Amount. The amount of
8 the monthly temporary and total and permanent disability
9 benefits shall be 50% of the participating employee's final
10 rate of earnings on the date disability was incurred, subject
11 to the following adjustments:
12 (a) If the participating employee has a reduced rate of
13 earnings at the time his employment ceases because of
14 disability, the rate of earnings shall be computed on the
15 basis of his last 12 month period of full-time employment.
16 (b) If the participating employee is eligible for a
17 disability benefit under the federal Social Security Act, the
18 amount of monthly disability benefits shall be reduced, but
19 not to less than $10 a month, by the amount he would be
20 eligible to receive as a disability benefit under the federal
21 Social Security Act, whether or not because of service as a
22 covered employee under this Article. The reduction shall be
23 effective as of the month the employee is eligible for Social
24 Security disability benefits. The Board may make such
25 reduction if it appears that the employee may be so eligible
26 pending determination of eligibility and make an appropriate
27 adjustment if necessary after such determination. If the
28 employee, because of his refusal to accept rehabilitation
29 services under the federal Rehabilitation Act of 1973 or the
30 federal Social Security Act, or because he is receiving
31 workers' compensation benefits, has his Social Security
32 benefits reduced or terminated, the disability benefit shall
33 be reduced as if the employee were receiving his full Social
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1 Security disability benefit.
2 (c) If the employee is over age 65, was not eligible for
3 a Social Security benefit immediately before reaching age 65
4 and is eligible for a Social Security old-age insurance
5 benefit, the amount of the monthly disability benefit shall
6 be reduced, but not to less than $10 a month, by the amount
7 of the old-age insurance benefit to which the employee is
8 entitled whether or not the employee applies for the Social
9 Security old-age insurance benefit. This reduction shall be
10 made in the month after the month in which the employee
11 attains age 65. However, if the employee was receiving a
12 Social Security disability benefit before reaching age 65,
13 the disability benefits after age 65 shall be determined
14 under subsection (b) of this Section.
15 (d) The amount of disability benefits shall not be
16 reduced by reason of any increase, other than one resulting
17 from a correction in the employee's wage records, in the
18 amount of disability or old-age insurance benefits under the
19 federal Social Security Act which takes effect after the
20 month of the initial reduction under paragraph (b) or (c) of
21 this Section.
22 (e) If the employee in any month receives compensation
23 from gainful employment which is more than 25% of the final
24 rate of earnings on which his disability benefits are based,
25 the temporary disability benefit payable for that month shall
26 be reduced by an amount equal to such excess.
27 (f) An employee who has been disabled for at least 30
28 days may return to work for the employer on a part-time basis
29 for a trial work period of up to one year, during which the
30 disability shall be deemed to continue. Service credit shall
31 continue to accrue and the disability benefit shall continue
32 to be paid during the trial work period, but the benefit
33 shall be reduced by the amount of earnings received by the
34 disabled employee. Return to service on a full-time basis
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1 shall terminate the trial work period. The reduction under
2 this subsection (f) shall be in lieu of the reduction, if
3 any, required under subsection (e).
4 (g) Beginning January 1, 1988, every total and permanent
5 disability benefit shall be increased by 3% of the original
6 amount of the benefit, not compounded, on each January 1
7 following the later of (1) the date the total and permanent
8 disability benefit begins, or (2) the date the total and
9 permanent disability benefit would have begun if the employee
10 had been paid a temporary disability benefit for 30 months;
11 except that beginning January 1, 2002, the increase shall be
12 3% of the total amount of the benefit then payable, including
13 any increases previously granted under this Article.
14 (Source: P.A. 87-740.)
15 (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
16 Sec. 7-156. Surviving spouse annuities - amount.
17 (a) The amount of surviving spouse annuity shall be:
18 1. Upon the death of an employee annuitant or such
19 person entitled, upon application, to a retirement annuity at
20 date of death, (i) an amount equal to 1/2 of the retirement
21 annuity which was or would have been payable exclusive of the
22 amount so payable which was provided from additional credits,
23 and disregarding any election made under paragraph (b) of
24 Section 7-142, plus (ii) an annuity which could be provided
25 at the then attained age of the surviving spouse and under
26 actuarial tables then in effect, from the excess of the
27 additional credits, (excluding any such credits used to
28 create a reversionary annuity) used to provide the annuity
29 granted pursuant to paragraph (a) (2) of Section 7-142 of
30 this article over the total annuity payments made pursuant
31 thereto.
32 2. Upon the death of a participating employee on or
33 after attainment of age 55, an amount equal to 1/2 of the
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1 retirement annuity which he could have had as of the date of
2 death had he then retired and applied for annuity, exclusive
3 of the portion thereof which could have been provided from
4 additional credits, and disregarding paragraph (b) of Section
5 7-142, plus an amount equal to the annuity which could be
6 provided from the total of his accumulated additional credits
7 at date of death, on the basis of the attained age of the
8 surviving spouse on such date.
9 3. Upon the death of a participating employee before age
10 55, an amount equal to 1/2 of the retirement annuity which he
11 could have had as of his attained age on the date of death,
12 had he then retired and applied for annuity, and the
13 provisions of this Article that no such annuity shall begin
14 until the employee has attained at least age 55 were not
15 applicable, exclusive of the portion thereof which could have
16 been provided from additional credits and disregarding
17 paragraph (b) of Section 7-142, plus an amount equal to the
18 annuity which could be provided from the total of his
19 accumulated additional credits at date of death, on the basis
20 of the attained age of the surviving spouse on such date.
21 If a surviving spouse is more than 5 years younger than
22 the deceased, that portion of the annuity which is not based
23 on additional credits shall be reduced in the ratio of the
24 value of a life annuity of $1 per year at an age of 5 years
25 less than the attained age of the deceased, at the earlier of
26 the date of the death or the date his retirement annuity
27 begins, to the value of a life annuity of $1 per year at the
28 attained age of the surviving spouse on such date, according
29 to actuarial tables approved by the Board.
30 In computing the amount of a surviving spouse annuity,
31 incremental increases of retirement annuities to the date of
32 death of the employee annuitant shall be considered.
33 (b) Each surviving spouse annuity payable on January 1,
34 1988 shall be increased on that date by 3% of the original
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1 amount of the annuity. Each surviving spouse annuity that
2 begins after January 1, 1988 shall be increased on the
3 January 1 next occurring after the annuity begins, by an
4 amount equal to (i) 3% of the original amount thereof if the
5 deceased employee was receiving a retirement annuity at the
6 time of his death; otherwise (ii) 0.167% of the original
7 amount thereof for each complete month which has elapsed
8 since the date the annuity began.
9 On each January 1 after the date of the initial increase
10 under this subsection, each surviving spouse annuity shall be
11 increased by 3% of the originally granted amount of the
12 annuity; except that beginning January 1, 2002, the increase
13 shall be 3% of the total amount of the annuity then payable,
14 including any increases previously granted under this
15 Article.
16 (Source: P.A. 85-941.)
17 Section 90. The State Mandates Act is amended by adding
18 Section 8.25 as follows:
19 (30 ILCS 805/8.25 new)
20 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
21 and 8 of this Act, no reimbursement by the State is required
22 for the implementation of any mandate created by this
23 amendatory Act of the 92nd General Assembly.
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.