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Public Act 103-0443


 

Public Act 0443 103RD GENERAL ASSEMBLY

  
  
  

 


 
Public Act 103-0443
 
HB3161 EnrolledLRB103 30865 RPS 57378 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by
changing Sections 8-137 and 8-137.1 as follows:
 
    (40 ILCS 5/8-137)   (from Ch. 108 1/2, par. 8-137)
    (Text of Section WITHOUT the changes made by P.A. 98-641,
which has been held unconstitutional)
    Sec. 8-137. Automatic increase in annuity.
    (a) An employee who retired or retires from service after
December 31, 1959 and before January 1, 1987, having attained
age 60 or more, shall, in January of the year after the year in
which the first anniversary of retirement occurs, have the
amount of his then fixed and payable monthly annuity increased
by 1 1/2%, and such first fixed annuity as granted at
retirement increased by a further 1 1/2% in January of each
year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning with January of the year 1984
such increases shall be at the rate of 3%. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article. An employee who retires
on annuity after December 31, 1959 and before January 1, 1987,
but before age 60, shall receive such increases beginning in
January of the year after the year in which he attains age 60.
    An employee who retires from service on or after January
1, 1987 shall, upon the first annuity payment date following
the first anniversary of the date of retirement, or upon the
first annuity payment date following attainment of age 60,
whichever occurs later, have his then fixed and payable
monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity on
the same date each year thereafter. Beginning in January of
1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
    (a-5) Notwithstanding the provisions of subsection (a),
upon the first annuity payment date following (1) the third
anniversary of retirement, (2) the attainment of age 53, or
(3) January 1, 2002, whichever occurs latest, the monthly
annuity of an employee who retires on annuity prior to the
attainment of age 60 and has not received an increase under
subsection (a) shall be increased by 3%, and the annuity shall
be increased by an additional 3% of the current payable
monthly annuity, including any increases previously granted
under this Article, on the same date each year thereafter. The
increases provided under this subsection are in lieu of the
increases provided in subsection (a).
    (a-6) Notwithstanding the provisions of subsections (a)
and (a-5), for all calendar years following the year in which
this amendatory Act of the 93rd General Assembly takes effect,
an increase in annuity under this Section that would otherwise
take effect at any time during the year shall instead take
effect in January of that year.
    (b) Subsections (a), (a-5), and (a-6) are not applicable
to an employee retiring and receiving a term annuity, as
herein defined, nor to any otherwise qualified employee who
retires before he makes employee contributions (at the 1/2 of
1% rate as provided in this Act) for this additional annuity
for not less than the equivalent of one full year. Such
employee, however, shall make arrangement to pay to the fund a
balance of such 1/2 of 1% contributions, based on his final
salary, as will bring such 1/2 of 1% contributions, computed
without interest, to the equivalent of or completion of one
year's contributions.
    Beginning with January, 1960, each employee shall
contribute by means of salary deductions 1/2 of 1% of each
salary payment, concurrently with and in addition to the
employee contributions otherwise made for annuity purposes.
    Each such additional contribution shall be credited to an
account in the prior service annuity reserve, to be used,
together with city contributions, to defray the cost of the
specified annuity increments. Any balance in such account at
the beginning of each calendar year shall be credited with
interest at the rate of 3% per annum.
    Such additional employee contributions are not refundable,
except to an employee who withdraws and applies for refund
under this Article, and in cases where a term annuity becomes
payable. In such cases his contributions shall be refunded,
without interest, and charged to such account in the prior
service annuity reserve.
(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
93-654, eff. 1-16-04.)
 
    (40 ILCS 5/8-137.1)  (from Ch. 108 1/2, par. 8-137.1)
    (Text of Section WITHOUT the changes made by P.A. 98-641,
which has been held unconstitutional)
    Sec. 8-137.1. Automatic increases in annuity for certain
heretofore retired participants. A retired municipal employee
who (a) is receiving annuity based on a service credit of 20 or
more years regardless of age at retirement or based on a
service credit of 15 or more years with retirement at age 55 or
over, and (b) does not qualify for the automatic increases in
annuity provided for in Section 8-137 of this Article, and (c)
elects to make a contribution to the Fund at a time and manner
prescribed by the Retirement Board, of a sum equal to 1% of the
amount of final monthly salary times the number of full years
of service on which the annuity was based in those cases where
the annuity was computed on the money purchase formula and in
those cases in which the annuity was computed under the
minimum annuity formula provisions of this Article a sum equal
to 1% of the average monthly salary on which the annuity was
based times such number of full years of service, shall have
his original fixed and payable monthly amount of annuity
increased in January of the year following the year in which he
attains the age of 65 years, if such age of 65 years is
attained in the year 1969 or later, by an amount equal to
1-1/2%, and by an equal additional 1-1/2% in January of each
year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning January of the year 1984 such
increases shall be at the rate of 3%. Beginning in January of
1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
    Whenever the retired municipal employee receiving annuity
has attained the age of 66 or more in 1969, he shall have such
annuity increased in January, 1970 by an amount equal to
1-1/2% multiplied by the number equal to the number of months
of January elapsing from and including January of the year
immediately following the year he attained the age of 65 if
retired at or before age 65, or from and including January of
the year immediately following the year of retirement if
retired at an age greater than 65, to and including January,
1970, and by an equal additional 1-1/2% in January of each year
thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning January of the year 1984 such
increases shall be at the rate of 3%. Beginning in January of
1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
    To defray the annual cost of such increases, the annual
interest income of the Fund, accruing from investments held by
the Fund, exclusive of gains or losses on sales or exchanges of
assets during the year, over and above 4% a year, shall be used
to the extent necessary and available to finance the cost of
such increases for the following year, and such amount shall
be transferred as of the end of each year, beginning with the
year 1969, to a Fund account designated as the Supplementary
Payment Reserve from the Investment and Interest Reserve set
forth in Section 8-221. The sums contributed by annuitants as
provided for in this Section shall also be placed in the
aforesaid Supplementary Payment Reserve and shall be applied
and used for the purposes of such Fund account, together with
the aforesaid interest.
    In the event the monies in the Supplementary Payment
Reserve in any year arising from: (1) the available interest
income as defined hereinbefore and accruing in the preceding
year above 4% a year and (2) the contributions by retired
persons, as set forth hereinbefore, are insufficient to make
the total payments to all persons estimated to be entitled to
the annuity increases specified hereinbefore, then (3) any
interest earnings over 4% a year beginning with the year 1969
which were not previously used to finance such increases and
which were transferred to the Prior Service Annuity Reserve
may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current
year, and such sums shall be transferred from the Prior
Service Annuity Reserve.
    In the event the total monies available in the
Supplementary Payment Reserve from the preceding indicated
sources are insufficient to make the total payments to all
persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies
available to the total of the total payments for that year
shall be paid to each person for that year.
    The Fund shall be obligated for the payment of the
increases in annuity as provided for in this Section only to
the extent that the assets for such purpose, as specified
herein, are available.
(Source: P.A. 90-766, eff. 8-14-98.)
 
    (40 ILCS 5/8-174.2 rep.)
    Section 10. The Illinois Pension Code is amended by
repealing Section 8-174.2.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/4/2023