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92_SB0563
LRB9207876EGfg
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
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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.