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| Public Act 103-0443
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| HB3161 Enrolled | LRB103 30865 RPS 57378 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by |
changing Sections 8-137 and 8-137.1 as follows:
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(40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
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(Text of Section WITHOUT the changes made by P.A. 98-641, |
which has been held unconstitutional) |
Sec. 8-137. Automatic increase in annuity.
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(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 |
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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.
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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.
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(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
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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).
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(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
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effect in January of that year.
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(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
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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.
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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.
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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 |
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interest at the rate of 3% per annum.
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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.
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(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff.
7-1-02; |
93-654, eff. 1-16-04.)
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(40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
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(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
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the annuity was computed on the money purchase formula and in |
those cases
in which the annuity was computed under the |
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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
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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
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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.
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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
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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 |
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increases shall be at the rate of 2% in lieu of the aforesaid
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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.
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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
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and used for the purposes of such Fund account, together with |
the aforesaid
interest.
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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 |
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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
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sufficient funds to finance such increases for the current |
year, and such
sums shall be transferred from the Prior |
Service Annuity Reserve.
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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
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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.
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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.
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(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/8-174.2 rep.) |
Section 10. The Illinois Pension Code is amended by |
repealing Section 8-174.2.
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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