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92nd General Assembly

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Public Act 92-0609

SB314 Enrolled                                 LRB9207506EGfg

    AN ACT in relation to 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,  8-138,  11-134,  and  11-134.1  as
follows:

    (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
    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).
    (b)  Subsections   (a)   and   (a-5)  are  The  foregoing
provision is 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. 90-766, eff. 8-14-98.)

    (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
    Sec. 8-138.  Minimum annuities - Additional provisions.
    (a)  An  employee who withdraws after age 65 or more with
at least 20 years of service, for whom the amount of age  and
service  and  prior service annuity combined is less than the
amount stated  in  this  Section,  shall  from  the  date  of
withdrawal,  instead  of all annuities otherwise provided, be
entitled to receive an annuity for life of $150 a year,  plus
1  1/2%  for each year of service, to and including 20 years,
and 1 2/3% for each year of service over  20  years,  of  his
highest  average  annual  salary  for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal.
    An employee who withdraws  after  20  or  more  years  of
service, before age 65, shall be entitled to such annuity, to
begin not earlier than upon attained age of 55 years if under
such  age  at withdrawal, reduced by 2% for each full year or
fractional part thereof that his attained age  is  less  than
65,  plus  an  additional  2% reduction for each full year or
fractional part thereof that his attained age when annuity is
to begin is less than 60 so that the total reduction  at  age
55 shall be 30%.
    (b)  An employee who withdraws after July 1, 1957, at age
60  or  over,  with 20 or more years of service, for whom the
age and service and prior service annuity combined,  is  less
than  the  amount  stated  in this paragraph, shall, from the
date of withdrawal, instead of such annuities, be entitled to
receive an annuity for life equal to 1 2/3% for each year  of
service,  of  the  highest  average  annual  salary for any 5
consecutive  years  within  the  last  10  years  of  service
immediately preceding the date of withdrawal; provided,  that
in the case of any employee who withdraws on or after July 1,
1971,  such  employee age 60 or over with 20 or more years of
service, shall receive an annuity for life equal to 1.67% for
each of the first 10 years of service; 1.90% for each of  the
next  10  years of service; 2.10% for each year of service in
excess of 20 but not exceeding 30; and 2.30% for each year of
service in excess of 30, based on the highest average  annual
salary  for  any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal.
    An employee who withdraws after July 1, 1957  and  before
January 1, 1988, with 20 or more years of service, before age
60  years  is  entitled to annuity, to begin not earlier than
upon  attained  age  of  55  years,  if  under  such  age  at
withdrawal, as computed  in  the  last  preceding  paragraph,
reduced  0.25% for each full month or fractional part thereof
that his attained age when annuity is to begin is  less  than
60  if  the employee was born before January 1, 1936, or 0.5%
for each such month if the employee  was  born  on  or  after
January 1, 1936.
    Any  employee  born before January 1, 1936, who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or  after  January  1,
1988,  may  elect  to  receive, in lieu of any other employee
annuity provided in this Section, an annuity for  life  equal
to 1.80% for each of the first 10 years of service, 2.00% for
each  of the next 10 years of service, 2.20% for each year of
service in excess of 20 but not exceeding 30, and  2.40%  for
each  year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last  10
years   of   service   immediately   preceding  the  date  of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at  withdrawal,  reduced  0.25%  for
each  full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that  an
employee  retiring  on or after January 1, 1988, at age 55 or
over but less than age  60,  having  at  least  35  years  of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date  of  this  amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service,  shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
    However,  in  the  case  of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at  age  55
or  older  and with at least 35 years of service, and who was
subject  under  this  subsection  (b)  to  the  reduction  in
retirement annuity because of retirement below age  60,  that
reduction  shall  cease  to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
    Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee  annuity  provided  in  this  Section,  an
annuity  for  life equal to 2.20% for each year of service if
withdrawal is before January 1, 2002, or 2.40% for each  year
of  service  if withdrawal is on or after January 1, 2002, of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than  upon  attained
age  of  55  years,  if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of  retirement
below age 60.
    Any employee who withdraws on or after the effective date
of  this  amendatory  Act  of  1997  with 20 or more years of
service may elect to receive, in lieu of any  other  employee
annuity  provided  in this Section, an annuity for life equal
to 2.20%, for each year of service, if withdrawal  is  before
January  1,  2002,  or  2.40%  for  each  year  of service if
withdrawal is on or after January 1,  2002,  of  the  highest
average  annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding  the  date  of
withdrawal,  to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full  month  or  remaining  fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or  over  with  at  least  25  years  of service shall not be
subject to the reduction in  retirement  annuity  because  of
retirement below age 60.
    The  maximum  annuity  payable  under part (a) and (b) of
this Section shall not exceed 70% of highest  average  annual
salary in the case of an employee who withdraws prior to July
1,  1971,  and 75% if withdrawal takes place on or after July
1, 1971 and prior to January 1, 2002, or  80%  if  withdrawal
takes  place on or after January 1, 2002.  For the purpose of
the minimum  annuity  provided  in  this  Section  $1,500  is
considered  the  minimum  annual salary for any year; and the
maximum annual salary for the computation of such annuity  is
$4,800  for any year before 1953, $6000 for the years 1953 to
1956, inclusive, and the actual annual salary, as  salary  is
defined in this Article, for any year thereafter.
    To  preserve  rights  existing  on December 31, 1959, for
participants and  contributors  on  that  date  to  the  fund
created  by  the  Court and Law Department Employees' Annuity
Act, who became participants in  the  fund  provided  for  on
January  1,  1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
    (c)  For an employee receiving  disability  benefit,  his
salary  for  annuity purposes under paragraphs (a) and (b) of
this  Section,  for  all  periods   of   disability   benefit
subsequent  to  the  year  1956,  is  the amount on which his
disability benefit was based.
    (d)  An employee with 20 or more years of service,  whose
entire   disability  benefit  credit  period  expires  before
attainment of age 55 while still  disabled  for  service,  is
entitled  upon  withdrawal  to  the larger of (1) the minimum
annuity provided above, assuming  he  is  then  age  55,  and
reducing  such  annuity to its actuarial equivalent as of his
attained age on such date or (2) the  annuity  provided  from
his age and service and prior service annuity credits.
    (e)  The  minimum  annuity provisions do not apply to any
former municipal employee receiving an annuity from the  fund
who  re-enters  service  as  a  municipal employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
    (f)  An employee in service  on  July  1,  1947,  or  who
became a contributor after July 1, 1947 and before attainment
of  age  70,  who  withdraws  after age 65, with less than 20
years of service for whom the annuity has  been  fixed  under
this  Article shall, instead of the annuity so fixed, receive
an annuity as follows:
    Such amount as he could have received had the accumulated
amounts for  annuity  been  improved  with  interest  at  the
effective   rate  to  the  date  of  his  withdrawal,  or  to
attainment of age 70, whichever is earlier, and had the  city
contributed  to such earlier date for age and service annuity
the amount that it would have contributed had he  been  under
age  65,  after  the date his annuity was fixed in accordance
with this Article, and assuming  his  annuity  were  computed
from  such  accumulations as of his age on such earlier date.
The annuity so computed shall not exceed  the  annuity  which
would  be  payable under the other provisions of this Section
if the employee was credited with 20  years  of  service  and
would qualify for annuity thereunder.
    (g)  Instead  of the annuity provided in this Article, an
employee having attained age 65 with at  least  15  years  of
service  who  withdraws from service on or after July 1, 1971
and whose annuity computed under  other  provisions  of  this
Article   is   less  than  the  amount  provided  under  this
paragraph, is entitled to a minimum annuity for life equal to
1% of the highest average annual salary, as salary is defined
and limited in this  Section  for  any  4  consecutive  years
within the last 10 years of service for each year of service,
plus  the  sum  of  $25 for each year of service. The annuity
shall not exceed 60% of such highest average annual salary.
    (g-1)  Instead of any other retirement  annuity  provided
in  this  Article,  an  employee who has at least 10 years of
service and withdraws from service on  or  after  January  1,
1999  may  elect  to  receive  a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% if withdrawal is before January  1,  2002,  or  2.4%  if
withdrawal  is  on or after January 1, 2002, of final average
salary for each year of service, subject to a maximum of  75%
of  final  average  salary if withdrawal is before January 1,
2002, or 80% if withdrawal is on or after  January  1,  2002.
For  the  purpose of calculating this annuity, "final average
salary" means the highest average annual  salary  for  any  4
consecutive years in the last 10 years of service.
    (h)  The  minimum  annuities  provided under this Section
shall be paid in equal monthly installments.
    (i)  The amendatory provisions of part  (b)  and  (g)  of
this Section shall be effective July 1, 1971 and apply in the
case  of  every  qualifying  employee withdrawing on or after
July 1, 1971.
    (j)  The amendatory provisions of this amendatory Act  of
1985 (P.A. 84-23) relating to the discount of annuity because
of  retirement  prior  to  attainment  of  age 60, and to the
retirement formula, for those born before  January  1,  1936,
shall  apply  only  to qualifying employees withdrawing on or
after July 18, 1985.
    (j-1)  The  changes  made  to  this   Section   by   this
amendatory  Act  of the 92nd General Assembly (increasing the
retirement formula to 2.4% per year of service and increasing
the maximum to  80%)  apply  to  persons  who  withdraw  from
service  on  or  after January 1, 2002, regardless of whether
that withdrawal takes place before the effective date of this
amendatory Act.  In the case of a person who  withdraws  from
service  on  or after January 1, 2002 but begins to receive a
retirement  annuity  before  the  effective  date   of   this
amendatory  Act,  the annuity shall be recalculated, with the
increase resulting from this amendatory Act accruing from the
date the retirement annuity began.
    (k)  Beginning on January 1, 1999, the minimum amount  of
employee's  annuity  shall be $850 per month for life for the
following classes of employees, without regard  to  the  fact
that  withdrawal occurred prior to the effective date of this
amendatory Act of 1998:
         (1)  any employee annuitant alive  and  receiving  a
    life annuity on the effective date of this amendatory Act
    of 1998, except a reciprocal annuity;
         (2)  any  employee  annuitant  alive and receiving a
    term annuity on the effective date of this amendatory Act
    of 1998, except a reciprocal annuity;
         (3)  any employee annuitant alive  and  receiving  a
    reciprocal   annuity   on  the  effective  date  of  this
    amendatory Act of 1998, whose service in this fund is  at
    least 5 years;
         (4)  any employee annuitant withdrawing after age 60
    on  or after the effective date of this amendatory Act of
    1998, with at least 10 years of service in this fund.
    The increases granted under items (1),  (2)  and  (3)  of
this subsection (k) shall not be limited by any other Section
of this Act.
(Source:  P.A.  90-32,  eff.  6-27-97;  90-511, eff. 8-22-97;
90-766, eff. 8-14-98.)

    (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
    Sec. 11-134.  Minimum annuities.
    (a)  An employee whose withdrawal occurs  after  July  1,
1957 at age 60 or over, with 20 or more years of service, (as
service  is  defined or computed in Section 11-216), for whom
the age and service and prior  service  annuity  combined  is
less  than the amount stated in this Section, shall, from and
after the date  of  withdrawal,  in  lieu  of  all  annuities
otherwise provided in this Article, be entitled to receive an
annuity  for  life of an amount equal to 1 2/3% for each year
of service, of the highest average annual salary  for  any  5
consecutive  years  within  the  last  10  years  of  service
immediately  preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more  years  of
service,  shall be entitled to instead receive an annuity for
life equal to 1.67%  for  each  of  the  first  10  years  of
service;  1.90%  for  each  of  the next 10 years of service;
2.10% for each year of  service  in  excess  of  20  but  not
exceeding 30; and 2.30% for each year of service in excess of
30,  based  on  the  highest  average annual salary for any 4
consecutive  years  within  the  last  10  years  of  service
immediately preceding the date of withdrawal.
    An employee who withdraws after July 1, 1957  and  before
January 1, 1988, with 20 or more years of service, before age
60,  shall  be  entitled  to an annuity, to begin not earlier
than age 55, if under such age at withdrawal, as computed  in
the  last  preceding paragraph, reduced 0.25% if the employee
was born before January 1, 1936, or 0.5% if the employee  was
born  on  or  after  January  1, 1936, for each full month or
fractional part thereof  that  his  attained  age  when  such
annuity is to begin is less than 60.
    Any  employee  born  before January 1, 1936 who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or  after  January  1,
1988,  may  elect  to  receive, in lieu of any other employee
annuity provided in this Section, an annuity for  life  equal
to 1.80% for each of the first 10 years of service, 2.00% for
each  of the next 10 years of service, 2.20% for each year of
service in excess of 20, but not exceeding 30, and 2.40%  for
each  year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last  10
years   of   service   immediately   preceding  the  date  of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at  withdrawal,  reduced  0.25%  for
each  full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that  an
employee  retiring  on or after January 1, 1988, at age 55 or
over but less than age  60,  having  at  least  35  years  of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date  of  this  amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service,  shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
    However,  in  the  case  of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at  age  55
or  older  and with at least 35 years of service, and who was
subject  under  this  subsection  (a)  to  the  reduction  in
retirement annuity because of retirement below age  60,  that
reduction  shall  cease  to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
    Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee  annuity  provided  in  this  Section,  an
annuity  for  life equal to 2.20% for each year of service if
withdrawal is before January 1, 2002, or 2.40% for each  year
of  service  if withdrawal is on or after January 1, 2002, of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than  upon  attained
age  of  55  years,  if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of  retirement
below age 60.
    Any employee who withdraws on or after the effective date
of  this  amendatory  Act  of  1997  with 20 or more years of
service may elect to receive, in lieu of any  other  employee
annuity  provided  in this Section, an annuity for life equal
to 2.20%, for each year of service if  withdrawal  is  before
January  1,  2002,  or  2.40%  for  each  year  of service if
withdrawal is on or after January 1,  2002,  of  the  highest
average  annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding  the  date  of
withdrawal,  to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full  month  or  remaining  fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or  over  with  at  least  25  years  of service shall not be
subject to the reduction in  retirement  annuity  because  of
retirement below age 60.
    The  maximum  annuity payable under this paragraph (a) of
this Section shall not exceed 70% of highest  average  annual
salary in the case of an employee who withdraws prior to July
1,  1971,  75%  if withdrawal takes place on or after July 1,
1971 and prior to January 1, 2002, or 80% if withdrawal is on
or after January 1, 2002.  For the  purpose  of  the  minimum
annuity   provided   in   said  paragraphs  $1,500  shall  be
considered the minimum annual salary for any  year;  and  the
maximum annual salary to be considered for the computation of
such  annuity  shall  be  $4,800  for any year prior to 1953,
$6,000 for the years 1953 to 1956, inclusive, and the  actual
annual  salary, as salary is defined in this Article, for any
year thereafter.
    (b)  For an employee receiving  disability  benefit,  his
salary for annuity purposes under this Section shall, for all
periods of disability benefit subsequent to the year 1956, be
the amount on which his disability benefit was based.
    (c)  An  employee with 20 or more years of service, whose
entire disability benefit  credit  period  expires  prior  to
attainment  of age 55 while still disabled for service, shall
be entitled upon withdrawal to the larger of (1) the  minimum
annuity  provided  above assuming that he is then age 55, and
reducing such annuity to  its  actuarial  equivalent  at  his
attained  age  on such date, or (2) the annuity provided from
his age and service and prior service annuity credits.
    (d)  The minimum annuity provisions  as  aforesaid  shall
not  apply  to  any former employee receiving an annuity from
the fund, and who re-enters service as an employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
    (e)  An employee in service  on  July  1,  1947,  or  who
became  a contributor after July 1, 1947 and prior to July 1,
1950, or who shall become a contributor  to  the  fund  after
July  1,  1950  prior  to attainment of age 70, who withdraws
after age 65 with less than 20 years of service, for whom the
annuity has been fixed under the foregoing Sections  of  this
Article  shall,  in  lieu of the annuity so fixed, receive an
annuity as follows:
    Such amount as he could have received had the accumulated
amounts for  annuity  been  improved  with  interest  at  the
effective   rate  to  the  date  of  his  withdrawal,  or  to
attainment of age 70, whichever is earlier, and had the  city
contributed  to such earlier date for age and service annuity
the amount that would have been contributed had he been under
age 65, after the date his annuity was  fixed  in  accordance
with  this  Article,  and  assuming his annuity were computed
from such accumulations as of his age on such  earlier  date.
The  annuity  so  computed shall not exceed the annuity which
would be payable under the other provisions of  this  Section
if  the  employee  was  credited with 20 years of service and
would qualify for annuity thereunder.
    (f)  In lieu of the annuity provided in this  or  in  any
other  Section  of  this Article, an employee having attained
age 65 with at least 15 years of service who  withdraws  from
service  on  or after July 1, 1971 and whose annuity computed
under other provisions of  this  Article  is  less  than  the
amount  provided  under  this  paragraph shall be entitled to
receive a minimum annual annuity for life equal to 1% of  the
highest  average  annual  salary  for any 4 consecutive years
within the last 10 years  of  service  immediately  preceding
retirement  for  each year of his service plus the sum of $25
for each year of  service.  Such  annual  annuity  shall  not
exceed  the maximum percentages stated under paragraph (a) of
this Section of such highest average annual salary.
    (f-1)  Instead of any other retirement  annuity  provided
in  this  Article,  an  employee who has at least 10 years of
service and withdraws from service on  or  after  January  1,
1999  may  elect  to  receive  a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% if withdrawal is before January 1,  2002,  or  2.4%  for
each  year of service if withdrawal is on or after January 1,
2002, of final average  salary  for  each  year  of  service,
subject  to  a  maximum  of  75%  of  final average salary if
withdrawal is before January 1, 2002, or 80% if withdrawal is
on or after January 1, 2002.  For the purpose of  calculating
this  annuity,  "final  average  salary"  means  the  highest
average annual salary for any 4 consecutive years in the last
10 years of service.
    (g)  Any  annuity payable under the preceding subsections
of this  Section  11-134  shall  be  paid  in  equal  monthly
installments.
    (h)  The  amendatory  provisions  of  part (a) and (f) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee  withdrawing  on  or  after
July 1, 1971.
    (h-1)  The   changes   made   to  this  Section  by  this
amendatory Act of the 92nd General Assembly  (increasing  the
retirement formula to 2.4% per year of service and increasing
the  maximum  to  80%)  apply  to  persons  who withdraw from
service on or after January 1, 2002,  regardless  of  whether
that withdrawal takes place before the effective date of this
amendatory  Act.   In the case of a person who withdraws from
service on or after January 1, 2002 but begins to  receive  a
retirement   annuity   before  the  effective  date  of  this
amendatory Act, the annuity shall be recalculated,  with  the
increase resulting from this amendatory Act accruing from the
date the retirement annuity began.
    (i)  The  amendatory provisions of this amendatory Act of
1985  relating  to  the  discount  of  annuity   because   of
retirement  prior  to attainment of age 60 and increasing the
retirement formula for those born  before  January  1,  1936,
shall  apply  only  to qualifying employees withdrawing on or
after August 16, 1985.
    (j)  Beginning on January 1, 1999, the minimum amount  of
employee's  annuity  shall be $850 per month for life for the
following classes of employees, without regard  to  the  fact
that  withdrawal occurred prior to the effective date of this
amendatory Act of 1998:
         (1)  any employee annuitant alive  and  receiving  a
    life annuity on the effective date of this amendatory Act
    of 1998, except a reciprocal annuity;
         (2)  any  employee  annuitant  alive and receiving a
    term annuity on the effective date of this amendatory Act
    of 1998, except a reciprocal annuity;
         (3)  any employee annuitant alive  and  receiving  a
    reciprocal   annuity   on  the  effective  date  of  this
    amendatory Act of 1998, whose service in this fund is  at
    least 5 years;
         (4)  any employee annuitant withdrawing after age 60
    on  or after the effective date of this amendatory Act of
    1998, with at least 10 years of service in this fund.
    The increases granted under items (1),  (2)  and  (3)  of
this subsection (j) shall not be limited by any other Section
of this Act.
(Source:  P.A.  90-32,  eff.  6-27-97;  90-511, eff. 8-22-97;
90-766, eff. 8-14-98.)

    (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
    Sec. 11-134.1. Automatic increase in annuity.
    (a)  An employee who  retired  or  retires  from  service
after  December  31, 1963, and before January 1, 1987, having
attained age 60 or more, shall, in the month  of  January  of
the year following 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%.  Beginning
January,  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, 1963 and before January 1, 1987, but  prior  to  age  60,
shall  receive  such  increases beginning with January of the
year immediately following the year in which he  attains  the
age of 60 years.
    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).
    (b)  Subsections   (a)   and   (a-5)  are  The  foregoing
provision is not  applicable  to  an  employee  retiring  and
receiving  a term annuity, as defined in this Article, nor to
any otherwise qualified employee who retires before he  shall
have  made  employee  contributions (at the 1/2 of 1% rate as
hereinafter provided) for the  purposes  of  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 the month of January, 1964, 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  employee  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 as of
the beginning of each calendar year existing in such  account
shall be credited with interest at the rate of 3% per annum.
    Such  employee  contributions  shall  not  be  subject to
refund, except to an employee who resigns  or  is  discharged
and  applies for refund under this Article, and also in cases
where a term annuity becomes payable.
    In  such  cases  the  employee  contributions  shall   be
refunded   him,   without   interest,   and  charged  to  the
aforementioned account in the prior service annuity reserve.
(Source: P.A. 90-766, eff. 8-14-98.)

    Section 10.  The Law Enforcement Officers, Civil  Defense
Workers,  Civil  Air  Patrol  Members,  Paramedics,  Firemen,
Chaplains, and State Employees Compensation Act is amended by
changing Section 3 as follows:

    (820 ILCS 315/3) (from Ch. 48, par. 283)
    Sec. 3.  Duty death benefit.  If a claim therefor is made
within one year of the date of death of a the law enforcement
officer,  civil  defense  worker,  civil  air  patrol member,
paramedic, fireman, chaplain, or State employee killed in the
line of duty, compensation in the amount of $10,000 shall  be
paid  to  the  person  designated  by  the  a law enforcement
officer, civil  defense  worker,  civil  air  patrol  member,
paramedic, fireman, chaplain, or State employee.
    The  amount of compensation shall be $10,000 if the death
killed in the line of  duty  occurred  prior  to  January  1,
1974;,  and $20,000 if such death occurred after December 31,
1973 and before July 1, 1983;, $50,000 if such death occurred
on or after  July  1,  1983  and  before  January  1,  1996;,
$100,000  if  the  death occurred on or after January 1, 1996
and  before  May  18,  2001;  the  effective  date  of   this
amendatory  Act of the 92nd General Assembly, and $118,000 if
the death occurred on or after May  18,  2001  the  effective
date  of this amendatory Act of the 92nd General Assembly and
before the effective date of this amendatory Act of the  92nd
General  Assembly;  and  $259,038  if  the death occurs on or
after the effective date of this amendatory Act of  the  92nd
General Assembly and before January 1, 2003.
    For  deaths  occurring  on  or after Beginning January 1,
2003, the death compensation rate for death in  the  line  of
duty  occurring  in  a  particular calendar year shall be the
death compensation rate for death occurring in  the  previous
calendar  year  (or  in the case of deaths occurring in 2003,
the rate in effect on  December  31,  2002)  increased  by  a
percentage  thereof equal to the percentage increase, if any,
in the index known as the Consumer Price Index for All  Urban
Consumers:  U.S.  city  average,  unadjusted,  for all items,
"Employment Cost Index, Wages and Salaries, by Occupation and
Industry Group: State and Local Government  Workers:   Public
Administration", as published by the United States Department
of  Labor,  Bureau  of  Labor  Statistics,  for the 12 months
ending with the month of June of that previous calendar year.
    If no beneficiary is designated or surviving at the death
of the law enforcement officer, civil defense  worker,  civil
air  patrol  member,  paramedic,  fireman, chaplain, or State
employee killed in the line of duty, the  compensation  shall
be paid as follows:
         (a)  when  there  is  a surviving spouse, the entire
    sum shall be paid to the spouse;
         (b)  when  there  is  no  surviving  spouse,  but  a
    surviving descendant of  the  decedent,  the  entire  sum
    shall be paid to the decedent's descendants per stirpes;
         (c)  when  there is neither a surviving spouse nor a
    surviving descendant, the entire sum shall be paid to the
    parents of the decedent in equal parts, allowing  to  the
    surviving parent, if one is dead, the entire sum; and
         (d)  when  there  is no surviving spouse, descendant
    or parent  of  the  decedent,  but  there  are  surviving
    brothers  or  sisters,  or  descendants  of  a brother or
    sister, who were receiving their principal  support  from
    the  decedent at his death, the entire sum shall be paid,
    in equal parts, to the dependent brothers or  sisters  or
    dependent  descendant of a brother or sister.  Dependency
    shall be determined by the Court of Claims based upon the
    investigation and report of the Attorney General.
    When there is no beneficiary designated or  surviving  at
the  death  of  the  law  enforcement  officer, civil defense
worker,  civil  air  patrol   member,   paramedic,   fireman,
chaplain, or State employee killed in the line of duty and no
surviving  spouse,  descendant,  parent, dependent brother or
sister, or dependent descendant of a brother  or  sister,  no
compensation shall be payable under this Act.
    No  part  of  such  compensation may be paid to any other
person for any efforts in securing such compensation.
(Source: P.A. 92-3, eff. 5-18-01.)

    Section 90.  The State Mandates Act is amended by  adding
Section 8.26 as follows:

    (30 ILCS 805/8.26 new)
    Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is  required
for  the  implementation  of  any  mandate  created  by  this
amendatory Act of the 92nd General Assembly.

    Section  95.   To  the  extent  that  the changes made in
Section 5 of this  Act  (increasing  the  retirement  formula
under  Articles  8  and  11  of  the  Illinois  Pension Code)
conflict with the corresponding changes made  in  House  Bill
5168 of the 92nd General Assembly, the provisions of this Act
are intended to control.
    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly June 02, 2002.
    Approved July 01, 2002.
    Effective July 01, 2002.

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