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92_SB0563LRB9207876EGfg 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 and2.5%~~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 -3- LRB9207876EGfg 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 being0.167% 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) 16Sec. 8.25. Exempt mandate. Notwithstanding Sections 617and 8 of this Act, no reimbursement by the State is required18for the implementation of any mandate created by this19amendatory Act of the 92nd General Assembly.20 Section 99. Effective date. This Act takes effect upon 21 becoming law.