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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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