State of Illinois
92nd General Assembly

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 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 Section 7-142 as follows:

 6        (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
 7        Sec. 7-142.  Retirement annuities - Amount.
 8        (a)  The amount of a retirement annuity shall be the  sum
 9    of the following, determined in accordance with the actuarial
10    tables in effect at the time of the grant of the annuity:
11             1.  For  employees  with 8 or more years of service,
12        an annuity computed pursuant to subparagraphs a or  b  of
13        this  subparagraph  1,  whichever  is the higher, and for
14        employees with less than 8 years of service  the  annuity
15        computed pursuant to subparagraph a:
16                  a.  The  monthly  annuity which can be provided
17             from the total accumulated normal, municipality  and
18             prior service credits, as of the attained age of the
19             employee  on  the  date  the annuity begins provided
20             that such annuity shall not exceed 75% of the  final
21             rate of earnings of the employee.
22                  b.  (i)  The  monthly annuity amount determined
23             as  follows  by  multiplying  (a)  2.0%  1 2/3%  for
24             annuitants with not more than 15 years or  (b)  2.0%
25             1 2/3%  for  the first 15 years and 2.5% 2% for each
26             year in excess of 15 years for annuitants with  more
27             than 15 years by the number of years plus fractional
28             years,  prorated on a basis of months, of creditable
29             service and multiply  the  product  thereof  by  the
30             employee's final rate of earnings.
31                  (ii)  For  the  sole  purpose  of computing the
                            -2-                LRB9207876EGfg
 1             formula (and not for the purposes of the limitations
 2             hereinafter stated) $125  shall  be  considered  the
 3             final  rate of earnings in all cases where the final
 4             rate of earnings is less than such amount.
 5                  (iii)  The   monthly   annuity   computed    in
 6             accordance  with  this  subparagraph  b,  shall  not
 7             exceed  an  amount equal to 75% of the final rate of
 8             earnings.
 9                  (iv)  (Blank).  For  employees  who  have  less
10             than  35  years  of service, the annuity computed in
11             accordance with this subparagraph b (as  reduced  by
12             application  of  subparagraph  (iii) above) shall be
13             reduced  by  0.25%  thereof  (0.5%  if  service  was
14             terminated before January 1, 1988) for each month or
15             fraction thereof (1) that the employee's age is less
16             than 60 years, or (2) if the employee has  at  least
17             30  years  of  service  credit,  that the employee's
18             service credit is less than 35 years,  whichever  is
19             less, on the date the annuity begins.
20             2.  The annuity which can be provided from the total
21        accumulated  additional credits as of the attained age of
22        the employee on the date the annuity begins.
23        (b)  If  payment  of  an  annuity  begins  prior  to  the
24    earliest age at which the employee will become  eligible  for
25    an  old  age  insurance  benefit  under  the  Federal  Social
26    Security  Act,  he  may  elect that the annuity payments from
27    this fund shall exceed those payable after his attaining such
28    age by an amount, computed as  determined  by  rules  of  the
29    Board,  but  not  in  excess of his estimated Social Security
30    Benefit, determined as of the effective date of the  annuity,
31    provided  that  in  no  case shall the total annuity payments
32    made by this fund exceed in actuarial value the annuity which
33    would have been payable had no such election been made.
34        (c)  The retirement annuity shall be increased each  year
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 1    by  2%,  not  compounded,  of  the monthly amount of annuity,
 2    taking into consideration any adjustment under paragraph  (b)
 3    of  this  Section.  This  increase  shall  be  effective each
 4    January 1  and  computed  from  the  effective  date  of  the
 5    retirement  annuity,  the  first increase being 0.167% of the
 6    monthly amount times the number of months from the  effective
 7    date  to January 1. Beginning January 1, 1984 and thereafter,
 8    the retirement annuity shall be increased by  3%  each  year,
 9    not  compounded.  This  increase  shall  not be applicable to
10    annuitants who are not in service on or  after  September  8,
11    1971.
12    (Source: P.A. 91-357, eff. 7-29-99.)

13        Section  90.  The State Mandates Act is amended by adding
14    Section 8.25 as follows:

15        (30 ILCS 805/8.25 new)
16        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
17    and  8 of this Act, no reimbursement by the State is required
18    for  the  implementation  of  any  mandate  created  by  this
19    amendatory Act of the 92nd General Assembly.

20        Section 99. Effective date.  This Act takes  effect  upon
21    becoming law.

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