State of Illinois
92nd General Assembly
Legislation

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92_SB0482

 
                                               LRB9206029EGfg

 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  10.   The  Illinois  Pension  Code is amended by
 5    changing Sections 9-134 and 9-134.3 as follows:

 6        (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
 7        Sec. 9-134.  Minimum annuity - Additional provisions.
 8        (a)  An employee who withdraws after July 1, 1957 at  age
 9    60  or  more  with  20 or more years of service, for whom the
10    amount of age and service and prior service annuity  combined
11    is  less than the amount stated in this Section from the date
12    of withdrawal, instead of all annuities otherwise provided in
13    this Article, is entitled to receive an annuity for  life  of
14    an  amount  equal  to 1 2/3% for each year of service, of his
15    highest average annual salary for  any  5  consecutive  years
16    within the last 10 years of service immediately preceding the
17    date of withdrawal; provided that in the case of any employee
18    who  withdraws on or after July 1, 1971, such employee age 60
19    or over with 20 or more years of service, or who withdraws on
20    or after January 1, 1982 and on or after attainment of age 65
21    with 10 or more years of service, shall  instead  receive  an
22    annuity  for  life  equal  to  1.67% for each of the first 10
23    years of service; 1.90% for each of  the  next  10  years  of
24    service;  2.10%  for each year of service in excess of 20 but
25    not exceeding 30; and 2.30%  for  each  year  of  service  in
26    excess  of 30, based on the highest average annual salary for
27    any 4 consecutive years within the last 10 years  of  service
28    immediately preceding the date of withdrawal.
29        An  employee  who withdraws after July 1, 1957, but prior
30    to January 1, 1988, with 20 or more years of service,  before
31    age  60 is entitled to annuity, to begin not earlier than age
 
                            -2-                LRB9206029EGfg
 1    55, if under such age at withdrawal, as computed in the  last
 2    preceding paragraph, reduced 1/2 of 1% for each full month or
 3    fractional part thereof that his attained age when annuity is
 4    to  begin is less than 60 to the end that the total reduction
 5    at age 55 shall be 30%, except that an employee  retiring  at
 6    age 55 or over but less than age 60, having at least 35 years
 7    of  service,  shall  not  be  subject to the reduction in his
 8    retirement annuity because of retirement below age 60.
 9        An employee who withdraws on or after  January  1,  1988,
10    with  20  or  more  years  of  service  and before age 60, is
11    entitled to annuity as computed above, to begin  not  earlier
12    than  age  50 if under such age at withdrawal, reduced 1/2 of
13    1% for each full month or fractional part  thereof  that  his
14    attained age when annuity is to begin is less than 60, to the
15    end  that  the total reduction at age 50 shall be 60%, except
16    that an employee retiring at age 50 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        An employee who withdraws on or after January 1, 1992 but
21    before  January  1,  1993,  at  age 60 or over with 5 or more
22    years of service, may elect, in lieu of  any  other  employee
23    annuity  provided  in this Section, to receive an annuity for
24    life equal to 2.20%  for  each  of  the  first  20  years  of
25    service,  and 2.40% for each year of service in excess of 20,
26    based  on  the  highest  average  annual  salary  for  any  4
27    consecutive  years  within  the  last  10  years  of  service
28    immediately preceding the date of  withdrawal.   An  employee
29    who withdraws on or after January 1, 1992, but before January
30    1,  1993,  on  or  after  attainment  of  age  55  but before
31    attainment of age 60 with 5 or  more  years  of  service,  is
32    entitled  to  elect  such  annuity,  but the annuity shall be
33    reduced 0.25% for each full month or fractional part  thereof
34    that  his  attained  age when the annuity is to begin is less
 
                            -3-                LRB9206029EGfg
 1    than age 60, to the end that the total reduction  at  age  55
 2    shall  be  15%, except that an employee retiring at age 55 or
 3    over but less than age  60,  having  at  least  30  years  of
 4    service,  shall not be subject to the reduction in retirement
 5    annuity because of retirement below  age  60.   This  annuity
 6    benefit  formula  shall only apply to those employees who are
 7    age 55 or over prior to January 1, 1993,  and  who  elect  to
 8    withdraw  at  age  55 or over on or after January 1, 1992 but
 9    before January 1, 1993.
10        An employee who withdraws on or after July  1,  1996  but
11    before August 1, 1996, at age 55 or over with 8 or more years
12    of  service, may elect, in lieu of any other employee annuity
13    provided in this Section, to  receive  an  annuity  for  life
14    equal to 2.20% for each of the first 20 years of service, and
15    2.40%  for each year of service in excess of 20, based on the
16    highest average annual salary for  any  4  consecutive  years
17    within the last 10 years of service immediately preceding the
18    date of withdrawal, but the annuity shall be reduced by 0.25%
19    for  each  full  month  or  fractional  part thereof that the
20    annuitant's attained age when the annuity is to begin is less
21    than age 60, unless the annuitant has at least  30  years  of
22    service.
23        The  maximum  annuity  under this paragraph (a) shall not
24    exceed 70%  of  highest  average  annual  salary  for  any  5
25    consecutive  years within the last 10 years of service in the
26    case of an employee who withdraws prior to July 1, 1971,  and
27    75%   of   the  highest  average  annual  salary  for  any  4
28    consecutive  years  within  the  last  10  years  of  service
29    immediately preceding the date of  withdrawal  if  withdrawal
30    takes  place on or after July 1, 1971 and prior to January 1,
31    1988, and 80% of the highest average annual salary for any  4
32    consecutive  years  within  the  last  10  years  of  service
33    immediately  preceding  the  date of withdrawal if withdrawal
34    takes place on or after  January  1,  1988.  Fifteen  hundred
 
                            -4-                LRB9206029EGfg
 1    dollars  shall  be  considered  the  minimum amount of annual
 2    salary for any year, and the maximum shall be his  salary  as
 3    defined  in  this  Article,  except that for the years before
 4    1957 and subsequent to 1952 the maximum annual salary  to  be
 5    considered  shall be $6,000, and for any year before the year
 6    1953, $4,800.
 7        (b)  Any employee who withdraws on or after July 1,  1985
 8    but  prior  to  January 1, 1988, at age 60 or over with 10 or
 9    more years of service, may elect in lieu of  the  benefit  in
10    paragraph  (a)  to receive an annuity for life equal to 2.00%
11    for each year of service, based on the highest average annual
12    salary for any 4 consecutive years within the last  10  years
13    of  service immediately preceding the date of withdrawal.  An
14    employee who withdraws on or after July 1, 1985, but prior to
15    January 1, 1988, with 10 or more years of service, but before
16    age 60, is entitled to  elect  such  annuity,  to  begin  not
17    earlier  than  age  55, but the annuity shall be reduced 0.5%
18    for each full month  or  fractional  part  thereof  that  his
19    attained age when the annuity is to begin is less than 60, to
20    the  end  that  the  total  reduction at age 55 shall be 30%;
21    except that an employee retiring at age 55 or over  but  less
22    than  age  60, having at least 30 years of service, shall not
23    be subject to the reduction in retirement annuity because  of
24    retirement below age 60.
25        An employee who withdraws on or after January 1, 1988, at
26    age  60  or over with 10 or more years of service, may elect,
27    in lieu of the  benefit  in  paragraph  (a),  to  receive  an
28    annuity  for  life  equal  to  2.20% for each of the first 20
29    years of service, and 2.4% for each year of service in excess
30    of 20, based on the highest average annual salary for  any  4
31    consecutive  years  within  the  last  10  years  of  service
32    immediately preceding the date of withdrawal. An employee who
33    withdraws  on or after January 1, 1988, with 10 or more years
34    of service, but before age 60,  is  entitled  to  elect  such
 
                            -5-                LRB9206029EGfg
 1    annuity,  to  begin  not earlier than age 50, but the annuity
 2    shall be reduced 0.5% for each full month or fractional  part
 3    thereof that his attained age when the annuity is to begin is
 4    less  than  60, to the end that the total reduction at age 50
 5    shall be 60%, except that an employee retiring at age  50  or
 6    over  but  less  than  age  60,  having  at least 30 years of
 7    service, shall not be subject to the reduction in  retirement
 8    annuity because of retirement below age 60.
 9        The  maximum  annuity  under this paragraph (b) shall not
10    exceed 75% of the highest average annual  salary  for  any  4
11    consecutive  years  within  the  last  10  years  of  service
12    immediately  preceding  the  date of withdrawal if withdrawal
13    occurs prior to January  1,  1988,  or  80%  of  the  highest
14    average  annual salary for any 4 consecutive years within the
15    last 10 years of service immediately preceding  the  date  of
16    withdrawal  if  withdrawal takes place on or after January 1,
17    1988.
18        The provisions of this paragraph (b) do not apply to  any
19    former  County  employee  receiving an annuity from the fund,
20    who re-enters service as a County employee, unless he renders
21    at least 3 years of additional  service  after  the  date  of
22    re-entry.
23        (c)  For  an  employee  receiving disability benefit, the
24    salary for annuity purposes under paragraph  (a)  or  (b)  of
25    this  Section  shall,  for  all periods of disability benefit
26    subsequent to the year 1956,  be  the  amount  on  which  his
27    disability benefit was based.
28        (d)  A  county employee with 20 or more years of service,
29    whose entire disability benefit credit period expires  before
30    attainment  of  age  50  (age  55 if expiration occurs before
31    January  1,  1988),  while  still  disabled  for  service  is
32    entitled upon withdrawal to the larger of:
33             (1)  The minimum annuity  provided  above,  assuming
34        that  he  is  then  age  50  (age 55 if expiration occurs
 
                            -6-                LRB9206029EGfg
 1        before January 1, 1988), and reducing such annuity to its
 2        actuarial equivalent at his attained age on such date, or
 3             (2)  the annuity provided from his age  and  service
 4        and prior service annuity credits.
 5        (e)  The minimum annuity provisions above do not apply to
 6    any  former  county  employee  receiving  an annuity from the
 7    fund, who re-enters service as a county employee,  unless  he
 8    renders at least 3 years of additional service after the date
 9    of re-entry.
10        (f)  Any  employee  in  service  on  July 1, 1947, or who
11    enters  service  thereafter  before  attaining  age  65   and
12    withdraws after age 65 with less than 10 years of service for
13    whom  the annuity has been fixed under the foregoing Sections
14    of this Article, shall, instead  of  the  annuity  so  fixed,
15    receive an annuity as follows:
16        Such amount as he could have received had the accumulated
17    amounts  for  annuity  been  improved  with  interest  at the
18    effective rate to the date of withdrawal, or to attainment of
19    age 70, whichever is earlier, and had the county  contributed
20    to  such  earlier date for age and service annuity the amount
21    that it would have contributed had  he  been  under  age  65,
22    after  the date his annuity was fixed in accordance with this
23    Article, and assuming his annuity  were  computed  from  such
24    accumulations  as  of  his  age on such earlier date. However
25    those employees who before  July  1,  1953,  made  additional
26    contributions in accordance with this Article, the annuity so
27    computed  under  this  paragraph shall not exceed the annuity
28    which would be payable under the  other  provisions  of  this
29    Section  if the employee concerned was credited with 20 years
30    of service and would qualify for annuity thereunder.
31        (g)  Instead of the annuity provided in this or any other
32    Section of this Article, an employee having attained  age  65
33    with  at  least  15  years  of service may elect to receive a
34    minimum annual annuity for life equal to 1%  of  the  highest
 
                            -7-                LRB9206029EGfg
 1    average  annual salary for any 4 consecutive years within the
 2    last 10 years of service immediately preceding retirement for
 3    each year of service, plus the sum of $25 for  each  year  of
 4    service  provided  that no such minimum annual annuity may be
 5    greater than 60% of such highest average annual salary.
 6        (h)  The   annuity   is   payable   in   equal    monthly
 7    installments.
 8        (i)  If,   by   operation   of   law,  a  function  of  a
 9    governmental unit, as defined by Section 20-107 of this Code,
10    is transferred in whole or in part to  the  county  in  which
11    this  Article 9 is created as set forth in Section 9-101, and
12    employees of the governmental unit are transferred as a class
13    to such county, the earnings credits in the retirement system
14    covering the governmental  unit  which  have  been  validated
15    under  Section  20-109  of  this  Code shall be considered in
16    determining the highest average annual salary for purposes of
17    this Section 9-134.
18        (j)  The annuity being paid to an employee  annuitant  on
19    July  1, 1988, shall be increased on that date by 1% for each
20    full year that has elapsed from the date the annuity began.
21        (k)  Notwithstanding anything to  the  contrary  in  this
22    Article  9, Section 20-131 shall not apply to an employee who
23    withdraws on or after January 1, 1988, but prior to attaining
24    age 55.  Therefore, no employee shall be entitled to elect to
25    have the alternative formula previously set forth in  Section
26    20-122  prior  to  the  amendatory  Act  of 1975 apply to any
27    annuity, the payment of  which  commenced  after  January  1,
28    1988, but prior to such employee's attainment of age 55.
29    (Source: P.A. 86-272; 87-794.)

30        (40 ILCS 5/9-134.3)
31        Sec. 9-134.3.  Early retirement incentives.
32        (a)  To  be  eligible  for  the benefits provided in this
33    Section, a person must:
 
                            -8-                LRB9206029EGfg
 1             (1)  be a current contributing member  of  the  Fund
 2        established  under  this  Article who, on May 1, 1997 and
 3        within 30 days prior to the date of retirement, is (i) in
 4        active payroll status in a position of  employment  under
 5        this  Article or (ii) receiving disability benefits under
 6        Section  9-156  or  9-157;  or  else  be  eligible  under
 7        subsection (g);
 8             (2)  have not  previously  retired  from  the  Fund,
 9        except as provided under subsection (g);
10             (3)  file  with the Board before October 1, 1997 (or
11        the date specified in subsection (g), if  applicable),  a
12        written  application  requesting the benefits provided in
13        this Section;
14             (4)  elect to retire under this Section on or  after
15        September  1, 1997 and on or before February 28, 1998 (or
16        the date established under  subsection  (d)  or  (g),  if
17        applicable);
18             (5)  have  attained  age 55 on or before the date of
19        retirement and before February 28, 1998; and
20             (6)  have at least 10 years of creditable service in
21        the  Fund,  excluding  service  in  any  of   the   other
22        participating   systems   under  the  Retirement  Systems
23        Reciprocal Act, by the effective date of  the  retirement
24        annuity or February 28, 1998, whichever occurs first.
25        (b)  An  employee who qualifies for the benefits provided
26    under this Section shall be entitled to the following:
27             (1)  The   employee's   retirement    annuity,    as
28        calculated  under  the  other provisions of this Article,
29        shall be increased at the time of retirement by an amount
30        equal to 1% of the employee's average annual  salary  for
31        the  highest 4 consecutive years within the last 10 years
32        of service, multiplied by the employee's number of  years
33        of  service  credit  in  this  Fund up to a maximum of 10
34        years;  except  that  the   total   retirement   annuity,
 
                            -9-                LRB9206029EGfg
 1        including  any  additional benefits elected under Section
 2        9-121.6 or 9-179.3, shall not exceed 80% of that  highest
 3        average annual salary.
 4             (2)  If   the   employee's   retirement  annuity  is
 5        calculated under Section 9-134, the employee shall not be
 6        subject to the reduction in retirement annuity because of
 7        retirement below age 60 that is otherwise required  under
 8        that Section.
 9        (c)  A  person  who elects to retire under the provisions
10    of this Section thereby relinquishes his  or  her  right,  if
11    any,  to  have  the  retirement  annuity calculated under the
12    alternative formula formerly set forth in Section  20-122  of
13    the Retirement Systems Reciprocal Act.
14        (d)  In   the   case   of  an  employee  whose  immediate
15    retirement could jeopardize public safety or create  hardship
16    for  the  employer,  the  deadline for retirement provided in
17    subdivision (a)(4) of this  Section  may  be  extended  to  a
18    specified  date,  no  later  than  August  31,  1998,  by the
19    employee's  department  head,  with  the  approval   of   the
20    President  of  the  County Board.  In the case of an employee
21    who is not employed  by  a  department  of  the  County,  the
22    employee's  "department  head",  for  the  purposes  of  this
23    Section, shall be a person designated by the President of the
24    County Board.
25        (e)  Notwithstanding  Section  9-161,  an  annuitant  who
26    reenters   service  under  this  Article  after  receiving  a
27    retirement annuity based  on  benefits  provided  under  this
28    Section  thereby  forfeits  the  right to continue to receive
29    those benefits and shall have his or her  retirement  annuity
30    recalculated without the benefits provided in this Section.
31        (f)  This  Section  also  applies to the Fund established
32    under Article 10 of this Code.
33        (g)  A person who (1) was  a  participating  employee  on
34    November  30,  1996, (2) was laid off on or after December 1,
 
                            -10-               LRB9206029EGfg
 1    1996 and before May 1, 1997 due to  the  elimination  of  the
 2    employee's  job  or  position,  (3) meets the requirements of
 3    items (3) through (6) of subsection (a), and (4) has not been
 4    reinstated as a Cook County employee since being laid off  is
 5    eligible  for  the benefits provided under this Section.  For
 6    such a person, the  application  required  under  subdivision
 7    (a)(3) of this Section must be filed within 60 days after the
 8    effective  date  of  this  amendatory Act of the 92nd General
 9    Assembly, and the date of retirement must be on or before the
10    later of February 28, 2002 or 60  days  after  the  effective
11    date of this amendatory Act.
12        In  the  case  of a person eligible under this subsection
13    (g) who began to receive  a  retirement  annuity  before  the
14    effective  date  of this amendatory Act, the annuity shall be
15    recalculated to include the increase under this Section,  and
16    that  increase shall take effect on the first annuity payment
17    date following the date of application.
18    (Source: P.A. 90-32, eff. 6-27-97.)

19        Section 90.  The State Mandates Act is amended by  adding
20    Section 8.25 as follows:

21        (30 ILCS 805/8.25 new)
22        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
23    and 8 of this Act, no reimbursement by the State is  required
24    for  the  implementation  of  any  mandate  created  by  this
25    amendatory Act of the 92nd General Assembly.

26        Section  99.  Effective date.  This Act takes effect upon
27    becoming law.

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