Bill Text: IL SB2005 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Illinois Public Labor Relations Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Failed) 2015-01-13 - Session Sine Die [SB2005 Detail]
Download: Illinois-2013-SB2005-Amended.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 2005
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 2005 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Section 15-136 as follows:
| ||||||
6 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
7 | (Text of Section before amendment by P.A. 98-599 )
| ||||||
8 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
9 | of this
Section 15-136 apply only to those participants who are | ||||||
10 | participating in the
traditional benefit package or the | ||||||
11 | portable benefit package and do not
apply to participants who | ||||||
12 | are participating in the self-managed plan.
| ||||||
13 | (a) The amount of a participant's retirement annuity, | ||||||
14 | expressed in the form
of a single-life annuity, shall be | ||||||
15 | determined by whichever of the following
rules is applicable | ||||||
16 | and provides the largest annuity:
|
| |||||||
| |||||||
1 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
2 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
3 | for each of the next 10 years of
service, 2.10% for each year | ||||||
4 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
5 | each year in excess of 30; or for persons who retire on or
| ||||||
6 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
7 | each year of
service.
| ||||||
8 | Rule 2: The retirement annuity shall be the sum of the | ||||||
9 | following,
determined from amounts credited to the participant | ||||||
10 | in accordance with the
actuarial tables and the effective rate | ||||||
11 | of interest in effect at the
time the retirement annuity | ||||||
12 | begins:
| ||||||
13 | (i) the normal annuity which can be provided on an | ||||||
14 | actuarially
equivalent basis, by the accumulated normal | ||||||
15 | contributions as of
the date the annuity begins;
| ||||||
16 | (ii) an annuity from employer contributions of an | ||||||
17 | amount equal to that
which can be provided on an | ||||||
18 | actuarially equivalent basis from the accumulated
normal | ||||||
19 | contributions made by the participant under Section | ||||||
20 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
21 | accumulated normal contributions made by
the participant; | ||||||
22 | and
| ||||||
23 | (iii) the annuity that can be provided on an | ||||||
24 | actuarially equivalent basis
from the entire contribution | ||||||
25 | made by the participant under Section 15-113.3.
| ||||||
26 | With respect to a police officer or firefighter who retires |
| |||||||
| |||||||
1 | on or after
August 14, 1998, the accumulated normal | ||||||
2 | contributions taken into account under
clauses (i) and (ii) of | ||||||
3 | this Rule 2 shall include the additional normal
contributions | ||||||
4 | made by the police officer or firefighter under Section
| ||||||
5 | 15-157(a).
| ||||||
6 | The amount of a retirement annuity calculated under this | ||||||
7 | Rule 2 shall
be computed solely on the basis of the | ||||||
8 | participant's accumulated normal
contributions, as specified | ||||||
9 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
10 | or employer contribution for early retirement under
Section | ||||||
11 | 15-136.2 nor any other employer contribution shall be used in | ||||||
12 | the
calculation of the amount of a retirement annuity under | ||||||
13 | this Rule 2.
| ||||||
14 | This amendatory Act of the 91st General Assembly is a | ||||||
15 | clarification of
existing law and applies to every participant | ||||||
16 | and annuitant without regard to
whether status as an employee | ||||||
17 | terminates before the effective date of this
amendatory Act.
| ||||||
18 | This Rule 2 does not apply to a person who first becomes an | ||||||
19 | employee under this Article on or after July 1, 2005.
| ||||||
20 | Rule 3: The retirement annuity of a participant who is | ||||||
21 | employed
at least one-half time during the period on which his | ||||||
22 | or her final rate of
earnings is based, shall be equal to the | ||||||
23 | participant's years of service
not to exceed 30, multiplied by | ||||||
24 | (1) $96 if the participant's final rate
of earnings is less | ||||||
25 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
26 | $3,500 but less than $4,500, (3) $120 if the final rate of |
| |||||||
| |||||||
1 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
2 | the final rate
of earnings is at least $5,500 but less than | ||||||
3 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
4 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
5 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
6 | the final rate of earnings is at least $8,500 but
less than | ||||||
7 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
8 | more, except that the annuity for those persons having made an | ||||||
9 | election under
Section 15-154(a-1) shall be calculated and | ||||||
10 | payable under the portable
retirement benefit program pursuant | ||||||
11 | to the provisions of Section 15-136.4.
| ||||||
12 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
13 | more years of
service as a police officer or firefighter, and a | ||||||
14 | participant who is age 55 or
over and has at least 20 but less | ||||||
15 | than 25 years of service as a police officer
or firefighter, | ||||||
16 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
17 | final rate of earnings for each of the first 10 years of | ||||||
18 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
19 | the next 10 years of service as a
police officer or | ||||||
20 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
21 | officer or firefighter in excess of 20. The retirement annuity | ||||||
22 | for all other
service shall be computed under Rule 1. A Tier 2 | ||||||
23 | member is eligible for a retirement annuity calculated under | ||||||
24 | Rule 4 only if that Tier 2 member meets the service | ||||||
25 | requirements for that benefit calculation as prescribed under | ||||||
26 | this Rule 4 in addition to the applicable age requirement under |
| |||||||
| |||||||
1 | subsection (a-5) of Section 15-135.
| ||||||
2 | For purposes of this Rule 4, a participant's service as a | ||||||
3 | firefighter
shall also include the following:
| ||||||
4 | (i) service that is performed while the person is an | ||||||
5 | employee under
subsection (h) of Section 15-107; and
| ||||||
6 | (ii) in the case of an individual who was a | ||||||
7 | participating employee
employed in the fire department of | ||||||
8 | the University of Illinois's
Champaign-Urbana campus | ||||||
9 | immediately prior to the elimination of that fire
| ||||||
10 | department and who immediately after the elimination of | ||||||
11 | that fire department
transferred to another job with the | ||||||
12 | University of Illinois, service performed
as an employee of | ||||||
13 | the University of Illinois in a position other than police
| ||||||
14 | officer or firefighter, from the date of that transfer | ||||||
15 | until the employee's
next termination of service with the | ||||||
16 | University of Illinois.
| ||||||
17 | (b) For a Tier 1 member, the retirement annuity provided | ||||||
18 | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each | ||||||
19 | month the participant is under age 60 at the
time of | ||||||
20 | retirement. However, this reduction shall not apply in the | ||||||
21 | following
cases:
| ||||||
22 | (1) For a disabled participant whose disability | ||||||
23 | benefits have been
discontinued because he or she has | ||||||
24 | exhausted eligibility for disability
benefits under clause | ||||||
25 | (6) of Section 15-152;
| ||||||
26 | (2) For a participant who has at least the number of |
| |||||||
| |||||||
1 | years of service
required to retire at any age under | ||||||
2 | subsection (a) of Section 15-135; or
| ||||||
3 | (3) For that portion of a retirement annuity which has | ||||||
4 | been provided on
account of service of the participant | ||||||
5 | during periods when he or she performed
the duties of a | ||||||
6 | police officer or firefighter, if these duties were | ||||||
7 | performed
for at least 5 years immediately preceding the | ||||||
8 | date the retirement annuity
is to begin.
| ||||||
9 | (b-5) The retirement annuity of a Tier 2 member who is | ||||||
10 | retiring after attaining age 62 with at least 10 years of | ||||||
11 | service credit shall be reduced by 1/2 of 1% for each full | ||||||
12 | month that the member's age is under age 67. | ||||||
13 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
14 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
15 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
16 | Code of 1986, as such Section may be
amended from time to time | ||||||
17 | and as such benefit limits shall be adjusted by
the | ||||||
18 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
19 | earnings.
| ||||||
20 | (d) A Tier 1 member whose status as an employee terminates | ||||||
21 | after August 14,
1969 shall receive automatic increases in his | ||||||
22 | or her retirement annuity as
follows:
| ||||||
23 | Effective January 1 immediately following the date the | ||||||
24 | retirement annuity
begins, the annuitant shall receive an | ||||||
25 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
26 | the monthly retirement annuity provided under
Rule 1, Rule 2, |
| |||||||
| |||||||
1 | Rule 3, or Rule 4 contained in this
Section, multiplied by
the | ||||||
2 | number of full months which elapsed from the date the | ||||||
3 | retirement annuity
payments began to January 1, 1972, plus | ||||||
4 | 0.1667% of such annuity, multiplied by
the number of full | ||||||
5 | months which elapsed from January 1, 1972, or the date the
| ||||||
6 | retirement annuity payments began, whichever is later, to | ||||||
7 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
8 | number of full months which elapsed
from January 1, 1978, or | ||||||
9 | the date the retirement annuity payments began,
whichever is | ||||||
10 | later, to the effective date of the increase.
| ||||||
11 | The annuitant shall receive an increase in his or her | ||||||
12 | monthly retirement
annuity on each January 1 thereafter during | ||||||
13 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
14 | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this | ||||||
15 | Section. The change made under this subsection by P.A. 81-970 | ||||||
16 | is
effective January 1, 1980 and applies to each annuitant | ||||||
17 | whose status as
an employee terminates before or after that | ||||||
18 | date.
| ||||||
19 | Beginning January 1, 1990, all automatic annual increases | ||||||
20 | payable under
this Section shall be calculated as a percentage | ||||||
21 | of the total annuity
payable at the time of the increase, | ||||||
22 | including all increases previously
granted under this Article.
| ||||||
23 | The change made in this subsection by P.A. 85-1008 is | ||||||
24 | effective January
26, 1988, and is applicable without regard to | ||||||
25 | whether status as an employee
terminated before that date.
| ||||||
26 | (d-5) A retirement annuity of a Tier 2 member shall receive |
| |||||||
| |||||||
1 | annual increases on the January 1 occurring either on or after | ||||||
2 | the attainment of age 67 or the first anniversary of the | ||||||
3 | annuity start date, whichever is later. Each annual increase | ||||||
4 | shall be calculated at 3% or one half the annual unadjusted | ||||||
5 | percentage increase (but not less than zero) in the consumer | ||||||
6 | price index-u for the 12 months ending with the September | ||||||
7 | preceding each November 1, whichever is less, of the originally | ||||||
8 | granted retirement annuity. If the annual unadjusted | ||||||
9 | percentage change in the consumer price index-u for the 12 | ||||||
10 | months ending with the September preceding each November 1 is | ||||||
11 | zero or there is a decrease, then the annuity shall not be | ||||||
12 | increased. | ||||||
13 | (e) If, on January 1, 1987, or the date the retirement | ||||||
14 | annuity payment
period begins, whichever is later, the sum of | ||||||
15 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
16 | Section
and the automatic annual increases provided under the | ||||||
17 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
18 | the retirement
annuity which would be provided by Rule 3, the | ||||||
19 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
20 | the date the
retirement annuity payment period begins, | ||||||
21 | whichever is later, to the amount
which would be provided by | ||||||
22 | Rule 3 of this Section. Such increased
amount shall be | ||||||
23 | considered as the retirement annuity in determining
benefits | ||||||
24 | provided under other Sections of this Article. This paragraph
| ||||||
25 | applies without regard to whether status as an employee | ||||||
26 | terminated before the
effective date of this amendatory Act of |
| |||||||
| |||||||
1 | 1987, provided that the annuitant was
employed at least | ||||||
2 | one-half time during the period on which the final rate of
| ||||||
3 | earnings was based.
| ||||||
4 | (f) A participant is entitled to such additional annuity as | ||||||
5 | may be provided
on an actuarially equivalent basis, by any | ||||||
6 | accumulated
additional contributions to his or her credit. | ||||||
7 | However,
the additional contributions made by the participant | ||||||
8 | toward the automatic
increases in annuity provided under this | ||||||
9 | Section shall not be taken into
account in determining the | ||||||
10 | amount of such additional annuity.
| ||||||
11 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
12 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
13 | or in part to an employer, and (2)
a participant transfers | ||||||
14 | employment from such governmental unit to such employer
within | ||||||
15 | 6 months after the transfer of the function, and (3) the sum of | ||||||
16 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
17 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
18 | participant by all other retirement
systems covered by Article | ||||||
19 | 20, and (C) the initial primary insurance amount to
which the | ||||||
20 | participant is entitled under the Social Security Act, is less | ||||||
21 | than
the retirement annuity which would have been payable if | ||||||
22 | all of the
participant's pension credits validated under | ||||||
23 | Section 20-109 had been validated
under this system, a | ||||||
24 | supplemental annuity equal to the difference in such
amounts | ||||||
25 | shall be payable to the participant.
| ||||||
26 | (h) On January 1, 1981, an annuitant who was receiving
a |
| |||||||
| |||||||
1 | retirement annuity on or before January 1, 1971 shall have his | ||||||
2 | or her
retirement annuity then being paid increased $1 per | ||||||
3 | month for
each year of creditable service. On January 1, 1982, | ||||||
4 | an annuitant whose
retirement annuity began on or before | ||||||
5 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
6 | being paid increased $1 per month for each year of
creditable | ||||||
7 | service.
| ||||||
8 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
9 | annuity began on or
before January 1, 1977, shall have the | ||||||
10 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
11 | per year of creditable service times the number of years
that | ||||||
12 | have elapsed since the annuity began.
| ||||||
13 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | ||||||
14 | 98-92, eff. 7-16-13.)
| ||||||
15 | (Text of Section after amendment by P.A. 98-599 )
| ||||||
16 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
17 | of this
Section 15-136 apply only to those participants who are | ||||||
18 | participating in the
traditional benefit package or the | ||||||
19 | portable benefit package and do not
apply to participants who | ||||||
20 | are participating in the self-managed plan.
| ||||||
21 | (a) The amount of a participant's retirement annuity, | ||||||
22 | expressed in the form
of a single-life annuity, shall be | ||||||
23 | determined by whichever of the following
rules is applicable | ||||||
24 | and provides the largest annuity:
| ||||||
25 | Rule 1: The retirement annuity shall be 1.67% of final rate |
| |||||||
| |||||||
1 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
2 | for each of the next 10 years of
service, 2.10% for each year | ||||||
3 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
4 | each year in excess of 30; or for persons who retire on or
| ||||||
5 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
6 | each year of
service.
| ||||||
7 | Rule 2: The retirement annuity shall be the sum of the | ||||||
8 | following,
determined from amounts credited to the participant | ||||||
9 | in accordance with the
actuarial tables and the effective rate | ||||||
10 | of interest in effect at the
time the retirement annuity | ||||||
11 | begins:
| ||||||
12 | (i) the normal annuity which can be provided on an | ||||||
13 | actuarially
equivalent basis (using the effective rate of | ||||||
14 | interest in effect at the time of retirement for | ||||||
15 | retirements occurring on or after July 1, 2014), by the | ||||||
16 | accumulated normal contributions as of
the date the annuity | ||||||
17 | begins;
| ||||||
18 | (ii) an annuity from employer contributions of an | ||||||
19 | amount equal to that
which can be provided on an | ||||||
20 | actuarially equivalent basis (using the effective rate of | ||||||
21 | interest in effect at the time of retirement for | ||||||
22 | retirements occurring on or after July 1, 2014) from the | ||||||
23 | accumulated
normal contributions made by the participant | ||||||
24 | under Section 15-113.6 and Section
15-113.7 plus 1.4 times | ||||||
25 | all other accumulated normal contributions made by
the | ||||||
26 | participant; and
|
| |||||||
| |||||||
1 | (iii) the annuity that can be provided on an | ||||||
2 | actuarially equivalent basis
(using the effective rate of | ||||||
3 | interest in effect at the time of retirement for | ||||||
4 | retirements occurring on or after July 1, 2014) from the | ||||||
5 | entire contribution made by the participant under Section | ||||||
6 | 15-113.3.
| ||||||
7 | Notwithstanding any other provision of this Rule 2, a | ||||||
8 | participant's retirement annuity calculated under this Rule 2 | ||||||
9 | shall not be less than the retirement annuity that participant | ||||||
10 | would have received under this Rule 2 had he or she retired on | ||||||
11 | June 30, 2014 during the fiscal year preceding the effective | ||||||
12 | date of this amendatory Act of the 98th General Assembly . | ||||||
13 | With respect to a police officer or firefighter who retires | ||||||
14 | on or after
August 14, 1998, the accumulated normal | ||||||
15 | contributions taken into account under
clauses (i) and (ii) of | ||||||
16 | this Rule 2 shall include the additional normal
contributions | ||||||
17 | made by the police officer or firefighter under Section
| ||||||
18 | 15-157(a).
| ||||||
19 | The amount of a retirement annuity calculated under this | ||||||
20 | Rule 2 shall
be computed solely on the basis of the | ||||||
21 | participant's accumulated normal
contributions, as specified | ||||||
22 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
23 | or employer contribution for early retirement under
Section | ||||||
24 | 15-136.2 nor any other employer contribution shall be used in | ||||||
25 | the
calculation of the amount of a retirement annuity under | ||||||
26 | this Rule 2.
|
| |||||||
| |||||||
1 | This amendatory Act of the 91st General Assembly is a | ||||||
2 | clarification of
existing law and applies to every participant | ||||||
3 | and annuitant without regard to
whether status as an employee | ||||||
4 | terminates before the effective date of this
amendatory Act.
| ||||||
5 | This Rule 2 does not apply to a person who first becomes an | ||||||
6 | employee under this Article on or after July 1, 2005.
| ||||||
7 | Rule 3: The retirement annuity of a participant who is | ||||||
8 | employed
at least one-half time during the period on which his | ||||||
9 | or her final rate of
earnings is based, shall be equal to the | ||||||
10 | participant's years of service
not to exceed 30, multiplied by | ||||||
11 | (1) $96 if the participant's final rate
of earnings is less | ||||||
12 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
13 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
14 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
15 | the final rate
of earnings is at least $5,500 but less than | ||||||
16 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
17 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
18 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
19 | the final rate of earnings is at least $8,500 but
less than | ||||||
20 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
21 | more, except that the annuity for those persons having made an | ||||||
22 | election under
Section 15-154(a-1) shall be calculated and | ||||||
23 | payable under the portable
retirement benefit program pursuant | ||||||
24 | to the provisions of Section 15-136.4.
| ||||||
25 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
26 | more years of
service as a police officer or firefighter, and a |
| |||||||
| |||||||
1 | participant who is age 55 or
over and has at least 20 but less | ||||||
2 | than 25 years of service as a police officer
or firefighter, | ||||||
3 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
4 | final rate of earnings for each of the first 10 years of | ||||||
5 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
6 | the next 10 years of service as a
police officer or | ||||||
7 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
8 | officer or firefighter in excess of 20. The retirement annuity | ||||||
9 | for all other
service shall be computed under Rule 1. A Tier 2 | ||||||
10 | member is eligible for a retirement annuity calculated under | ||||||
11 | Rule 4 only if that Tier 2 member meets the service | ||||||
12 | requirements for that benefit calculation as prescribed under | ||||||
13 | this Rule 4 in addition to the applicable age requirement under | ||||||
14 | subsection (a-5) of Section 15-135.
| ||||||
15 | For purposes of this Rule 4, a participant's service as a | ||||||
16 | firefighter
shall also include the following:
| ||||||
17 | (i) service that is performed while the person is an | ||||||
18 | employee under
subsection (h) of Section 15-107; and
| ||||||
19 | (ii) in the case of an individual who was a | ||||||
20 | participating employee
employed in the fire department of | ||||||
21 | the University of Illinois's
Champaign-Urbana campus | ||||||
22 | immediately prior to the elimination of that fire
| ||||||
23 | department and who immediately after the elimination of | ||||||
24 | that fire department
transferred to another job with the | ||||||
25 | University of Illinois, service performed
as an employee of | ||||||
26 | the University of Illinois in a position other than police
|
| |||||||
| |||||||
1 | officer or firefighter, from the date of that transfer | ||||||
2 | until the employee's
next termination of service with the | ||||||
3 | University of Illinois.
| ||||||
4 | (b) For a Tier 1 member, the retirement annuity provided | ||||||
5 | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each | ||||||
6 | month the participant is under age 60 at the
time of | ||||||
7 | retirement. However, this reduction shall not apply in the | ||||||
8 | following
cases:
| ||||||
9 | (1) For a disabled participant whose disability | ||||||
10 | benefits have been
discontinued because he or she has | ||||||
11 | exhausted eligibility for disability
benefits under clause | ||||||
12 | (6) of Section 15-152;
| ||||||
13 | (2) For a participant who has at least the number of | ||||||
14 | years of service
required to retire at any age under | ||||||
15 | subsection (a) of Section 15-135; or
| ||||||
16 | (3) For that portion of a retirement annuity which has | ||||||
17 | been provided on
account of service of the participant | ||||||
18 | during periods when he or she performed
the duties of a | ||||||
19 | police officer or firefighter, if these duties were | ||||||
20 | performed
for at least 5 years immediately preceding the | ||||||
21 | date the retirement annuity
is to begin.
| ||||||
22 | (b-5) The retirement annuity of a Tier 2 member who is | ||||||
23 | retiring after attaining age 62 with at least 10 years of | ||||||
24 | service credit shall be reduced by 1/2 of 1% for each full | ||||||
25 | month that the member's age is under age 67. | ||||||
26 | (c) The maximum retirement annuity provided under Rules 1, |
| |||||||
| |||||||
1 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
2 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
3 | Code of 1986, as such Section may be
amended from time to time | ||||||
4 | and as such benefit limits shall be adjusted by
the | ||||||
5 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
6 | earnings.
| ||||||
7 | (d) This subsection (d) is subject to subsections (d-1) and | ||||||
8 | (d-2). A Tier 1 member whose status as an employee terminates | ||||||
9 | after August 14,
1969 shall receive automatic increases in his | ||||||
10 | or her retirement annuity as
follows:
| ||||||
11 | Effective January 1 immediately following the date the | ||||||
12 | retirement annuity
begins, the annuitant shall receive an | ||||||
13 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
14 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
15 | Rule 3, or Rule 4 contained in this
Section, multiplied by
the | ||||||
16 | number of full months which elapsed from the date the | ||||||
17 | retirement annuity
payments began to January 1, 1972, plus | ||||||
18 | 0.1667% of such annuity, multiplied by
the number of full | ||||||
19 | months which elapsed from January 1, 1972, or the date the
| ||||||
20 | retirement annuity payments began, whichever is later, to | ||||||
21 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
22 | number of full months which elapsed
from January 1, 1978, or | ||||||
23 | the date the retirement annuity payments began,
whichever is | ||||||
24 | later, to the effective date of the increase.
| ||||||
25 | The annuitant shall receive an increase in his or her | ||||||
26 | monthly retirement
annuity on each January 1 thereafter during |
| |||||||
| |||||||
1 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
2 | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this | ||||||
3 | Section. The change made under this subsection by P.A. 81-970 | ||||||
4 | is
effective January 1, 1980 and applies to each annuitant | ||||||
5 | whose status as
an employee terminates before or after that | ||||||
6 | date.
| ||||||
7 | Beginning January 1, 1990, all automatic annual increases | ||||||
8 | payable under
this Section shall be calculated as a percentage | ||||||
9 | of the total annuity
payable at the time of the increase, | ||||||
10 | including all increases previously
granted under this Article.
| ||||||
11 | The change made in this subsection by P.A. 85-1008 is | ||||||
12 | effective January
26, 1988, and is applicable without regard to | ||||||
13 | whether status as an employee
terminated before that date.
| ||||||
14 | (d-1) Notwithstanding subsection (d), but subject to the | ||||||
15 | provisions of subsection (d-2), all automatic increases | ||||||
16 | payable under subsection (d) on or after the effective date of | ||||||
17 | this amendatory Act of the 98th General Assembly shall be | ||||||
18 | calculated as 3% of the lesser of (1) the total annuity
payable | ||||||
19 | at the time of the increase, including previous
increases | ||||||
20 | granted, or (2) $1,000 multiplied by the number of years of | ||||||
21 | creditable service upon which the annuity is based; however, in | ||||||
22 | the case of an initial increase subject to this subsection, the | ||||||
23 | amount of that increase shall be prorated if less than one year | ||||||
24 | has elapsed since retirement. | ||||||
25 | Beginning January 1, 2016, the $1,000 referred to in item | ||||||
26 | (2) of this subsection (d-1) shall be increased on each January |
| |||||||
| |||||||
1 | 1 by the annual unadjusted percentage increase (but not less | ||||||
2 | than zero) in the consumer price index-u for the 12 months | ||||||
3 | ending with the preceding September; these adjustments shall be | ||||||
4 | cumulative and compounded.
For the purposes of this subsection | ||||||
5 | (d-1), "consumer price index-u" means the index published by | ||||||
6 | the Bureau of Labor Statistics of the United States Department | ||||||
7 | of Labor that measures the average change in prices of goods | ||||||
8 | and services purchased by all urban consumers, United States | ||||||
9 | city average, all items, 1982-84 = 100. The new dollar amount | ||||||
10 | resulting from each annual adjustment shall be determined by | ||||||
11 | the Public Pension Division of the Department of Insurance and | ||||||
12 | made available to the System by November 1 of each year. | ||||||
13 | This subsection (d-1) is applicable without regard to | ||||||
14 | whether the person is in service on or after the effective date | ||||||
15 | of this amendatory Act of the 98th General Assembly. | ||||||
16 | (d-2) Notwithstanding subsections (d) and (d-1), for an | ||||||
17 | active or inactive Tier 1 member who has not begun to receive a | ||||||
18 | retirement annuity under this Article before July 1, 2014: | ||||||
19 | (1) the automatic annual increase payable under | ||||||
20 | subsection (d) the second January following the date the | ||||||
21 | retirement annuity begins shall be equal to 0% of the total | ||||||
22 | annuity payable at the time of the increase, if he or she | ||||||
23 | is at least age 50 on the effective date of this amendatory | ||||||
24 | Act; | ||||||
25 | (2) the automatic annual increase payable under | ||||||
26 | subsection (d) the second, fourth, and sixth January |
| |||||||
| |||||||
1 | following the date the retirement annuity begins shall be | ||||||
2 | equal to 0% of the total annuity payable at the time of the | ||||||
3 | increase, if he or she is at least age 47 but less than age | ||||||
4 | 50 on the effective date of this amendatory Act; | ||||||
5 | (3) the automatic annual increase payable under | ||||||
6 | subsection (d) the second, fourth, sixth, and eighth | ||||||
7 | January following the date the retirement annuity begins | ||||||
8 | shall be equal to 0% of the total annuity payable at the | ||||||
9 | time of the increase, if he or she is at least age 44 but | ||||||
10 | less than age 47 on the effective date of this amendatory | ||||||
11 | Act; | ||||||
12 | (4) the automatic annual increase payable under | ||||||
13 | subsection (d) the second, fourth, sixth, eighth, and tenth | ||||||
14 | January following the date the retirement annuity begins | ||||||
15 | shall be equal to 0% of the total annuity payable at the | ||||||
16 | time of the increase, if he or she is less than age 44 on | ||||||
17 | the effective date of this amendatory Act. | ||||||
18 | (d-5) A retirement annuity of a Tier 2 member shall receive | ||||||
19 | annual increases on the January 1 occurring either on or after | ||||||
20 | the attainment of age 67 or the first anniversary of the | ||||||
21 | annuity start date, whichever is later. Each annual increase | ||||||
22 | shall be calculated at 3% or one half the annual unadjusted | ||||||
23 | percentage increase (but not less than zero) in the consumer | ||||||
24 | price index-u for the 12 months ending with the September | ||||||
25 | preceding each November 1, whichever is less, of the originally | ||||||
26 | granted retirement annuity. If the annual unadjusted |
| |||||||
| |||||||
1 | percentage change in the consumer price index-u for the 12 | ||||||
2 | months ending with the September preceding each November 1 is | ||||||
3 | zero or there is a decrease, then the annuity shall not be | ||||||
4 | increased. | ||||||
5 | (e) If, on January 1, 1987, or the date the retirement | ||||||
6 | annuity payment
period begins, whichever is later, the sum of | ||||||
7 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
8 | Section
and the automatic annual increases provided under the | ||||||
9 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
10 | the retirement
annuity which would be provided by Rule 3, the | ||||||
11 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
12 | the date the
retirement annuity payment period begins, | ||||||
13 | whichever is later, to the amount
which would be provided by | ||||||
14 | Rule 3 of this Section. Such increased
amount shall be | ||||||
15 | considered as the retirement annuity in determining
benefits | ||||||
16 | provided under other Sections of this Article. This paragraph
| ||||||
17 | applies without regard to whether status as an employee | ||||||
18 | terminated before the
effective date of this amendatory Act of | ||||||
19 | 1987, provided that the annuitant was
employed at least | ||||||
20 | one-half time during the period on which the final rate of
| ||||||
21 | earnings was based.
| ||||||
22 | (f) A participant is entitled to such additional annuity as | ||||||
23 | may be provided
on an actuarially equivalent basis, by any | ||||||
24 | accumulated
additional contributions to his or her credit. | ||||||
25 | However,
the additional contributions made by the participant | ||||||
26 | toward the automatic
increases in annuity provided under this |
| |||||||
| |||||||
1 | Section shall not be taken into
account in determining the | ||||||
2 | amount of such additional annuity.
| ||||||
3 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
4 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
5 | or in part to an employer, and (2)
a participant transfers | ||||||
6 | employment from such governmental unit to such employer
within | ||||||
7 | 6 months after the transfer of the function, and (3) the sum of | ||||||
8 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
9 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
10 | participant by all other retirement
systems covered by Article | ||||||
11 | 20, and (C) the initial primary insurance amount to
which the | ||||||
12 | participant is entitled under the Social Security Act, is less | ||||||
13 | than
the retirement annuity which would have been payable if | ||||||
14 | all of the
participant's pension credits validated under | ||||||
15 | Section 20-109 had been validated
under this system, a | ||||||
16 | supplemental annuity equal to the difference in such
amounts | ||||||
17 | shall be payable to the participant.
| ||||||
18 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
19 | retirement annuity on or before January 1, 1971 shall have his | ||||||
20 | or her
retirement annuity then being paid increased $1 per | ||||||
21 | month for
each year of creditable service. On January 1, 1982, | ||||||
22 | an annuitant whose
retirement annuity began on or before | ||||||
23 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
24 | being paid increased $1 per month for each year of
creditable | ||||||
25 | service.
| ||||||
26 | (i) On January 1, 1987, any annuitant whose retirement |
| |||||||
| |||||||
1 | annuity began on or
before January 1, 1977, shall have the | ||||||
2 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
3 | per year of creditable service times the number of years
that | ||||||
4 | have elapsed since the annuity began.
| ||||||
5 | (j) For participants to whom subsection (a-3) of Section | ||||||
6 | 15-135 applies, the references to age 50, 55, and 62 in this | ||||||
7 | Section are increased as provided in subsection (a-3) of | ||||||
8 | Section 15-135. | ||||||
9 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | ||||||
10 | 98-92, eff. 7-16-13; 98-599, eff. 6-1-14.)
| ||||||
11 | Section 95. No acceleration or delay. Where this Act makes | ||||||
12 | changes in a statute that is represented in this Act by text | ||||||
13 | that is not yet or no longer in effect (for example, a Section | ||||||
14 | represented by multiple versions), the use of that text does | ||||||
15 | not accelerate or delay the taking effect of (i) the changes | ||||||
16 | made by this Act or (ii) provisions derived from any other | ||||||
17 | Public Act.
| ||||||
18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.".
|