Bill Text: IL SB2533 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Except for persons who elected to establish certain alternative credits, moves provisions concerning Tier 2 members of IMRF from the General Provisions Article to the IMRF Article. Defines Tier 1 regular employee and Tier 2 regular employee. Provides that the increase to the retirement annuity of a Tier 1 regular employee shall be computed from the effective date of the retirement annuity, the first increase being 0.25% (instead of .167%) of the monthly amount times the number of months from the effective date to January 1. Provides that if the employee was a Tier 1 regular employee, the surviving spouse annuity shall be increased by an amount equal to (i) 3% of the original amount thereof if the deceased employee was receiving a retirement annuity at the time of his or her death; otherwise (ii) 0.25% (instead of 0.167%) of the original amount thereof for each complete month that has elapsed since the date the annuity began. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB2533 Detail]

Download: Illinois-2019-SB2533-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2533

Introduced 1/28/2020, by Sen. Cristina Castro

SYNOPSIS AS INTRODUCED:
See Index

Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Except for persons who elected to establish certain alternative credits, moves provisions concerning Tier 2 members of IMRF from the General Provisions Article to the IMRF Article. Defines Tier 1 regular employee and Tier 2 regular employee. Provides that the increase to the retirement annuity of a Tier 1 regular employee shall be computed from the effective date of the retirement annuity, the first increase being 0.25% (instead of .167%) of the monthly amount times the number of months from the effective date to January 1. Provides that if the employee was a Tier 1 regular employee, the surviving spouse annuity shall be increased by an amount equal to (i) 3% of the original amount thereof if the deceased employee was receiving a retirement annuity at the time of his or her death; otherwise (ii) 0.25% (instead of 0.167%) of the original amount thereof for each complete month that has elapsed since the date the annuity began. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement.
LRB101 16191 RPS 65563 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

SB2533LRB101 16191 RPS 65563 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5Sections 1-160, 7-114, 7-116, 7-141, 7-141.1, 7-142, 7-144, and
67-156 and by adding Sections 7-109.4 and 7-109.5 as follows:
7 (40 ILCS 5/1-160)
8 Sec. 1-160. Provisions applicable to new hires.
9 (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
147, 15, or 18 of this Code, notwithstanding any other provision
15of this Code to the contrary, but do not apply to any
16self-managed plan established under this Code, to any person
17with respect to service as a sheriff's law enforcement employee
18under Article 7, or to any participant of the retirement plan
19established under Section 22-101; except that this Section
20applies to a person who elected to establish alternative
21credits by electing in writing after January 1, 2011, but
22before August 8, 2011, under Section 7-145.1 of this Code.
23Notwithstanding anything to the contrary in this Section, for

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1purposes of this Section, a person who is a Tier 1 regular
2employee as defined in Section 7-109.4 of this Code or who
3participated in a retirement system under Article 15 prior to
4January 1, 2011 shall be deemed a person who first became a
5member or participant prior to January 1, 2011 under any
6retirement system or pension fund subject to this Section. The
7changes made to this Section by Public Act 98-596 are a
8clarification of existing law and are intended to be
9retroactive to January 1, 2011 (the effective date of Public
10Act 96-889), notwithstanding the provisions of Section 1-103.1
11of this Code.
12 This Section does not apply to a person who first becomes a
13noncovered employee under Article 14 on or after the
14implementation date of the plan created under Section 1-161 for
15that Article, unless that person elects under subsection (b) of
16Section 1-161 to instead receive the benefits provided under
17this Section and the applicable provisions of that Article.
18 This Section does not apply to a person who first becomes a
19member or participant under Article 16 on or after the
20implementation date of the plan created under Section 1-161 for
21that Article, unless that person elects under subsection (b) of
22Section 1-161 to instead receive the benefits provided under
23this Section and the applicable provisions of that Article.
24 This Section does not apply to a person who elects under
25subsection (c-5) of Section 1-161 to receive the benefits under
26Section 1-161.

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1 This Section does not apply to a person who first becomes a
2member or participant of an affected pension fund on or after 6
3months after the resolution or ordinance date, as defined in
4Section 1-162, unless that person elects under subsection (c)
5of Section 1-162 to receive the benefits provided under this
6Section and the applicable provisions of the Article under
7which he or she is a member or participant.
8 (b) "Final average salary" means the average monthly (or
9annual) salary obtained by dividing the total salary or
10earnings calculated under the Article applicable to the member
11or participant during the 96 consecutive months (or 8
12consecutive years) of service within the last 120 months (or 10
13years) of service in which the total salary or earnings
14calculated under the applicable Article was the highest by the
15number of months (or years) of service in that period. For the
16purposes of a person who first becomes a member or participant
17of any retirement system or pension fund to which this Section
18applies on or after January 1, 2011, in this Code, "final
19average salary" shall be substituted for the following:
20 (1) (Blank). In Article 7 (except for service as
21 sheriff's law enforcement employees), "final rate of
22 earnings".
23 (2) In Articles 8, 9, 10, 11, and 12, "highest average
24 annual salary for any 4 consecutive years within the last
25 10 years of service immediately preceding the date of
26 withdrawal".

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1 (3) In Article 13, "average final salary".
2 (4) In Article 14, "final average compensation".
3 (5) In Article 17, "average salary".
4 (6) In Section 22-207, "wages or salary received by him
5 at the date of retirement or discharge".
6 (b-5) Beginning on January 1, 2011, for all purposes under
7this Code (including without limitation the calculation of
8benefits and employee contributions), the annual earnings,
9salary, or wages (based on the plan year) of a member or
10participant to whom this Section applies shall not exceed
11$106,800; however, that amount shall annually thereafter be
12increased by the lesser of (i) 3% of that amount, including all
13previous adjustments, or (ii) one-half the annual unadjusted
14percentage increase (but not less than zero) in the consumer
15price index-u for the 12 months ending with the September
16preceding each November 1, including all previous adjustments.
17 For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the average
20change in prices of goods and services purchased by all urban
21consumers, United States city average, all items, 1982-84 =
22100. The new amount resulting from each annual adjustment shall
23be determined by the Public Pension Division of the Department
24of Insurance and made available to the boards of the retirement
25systems and pension funds by November 1 of each year.
26 (c) A member or participant is entitled to a retirement

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1annuity upon written application if he or she has attained age
267 (beginning January 1, 2015, age 65 with respect to service
3under Article 12 of this Code that is subject to this Section)
4and has at least 10 years of service credit and is otherwise
5eligible under the requirements of the applicable Article.
6 A member or participant who has attained age 62 (beginning
7January 1, 2015, age 60 with respect to service under Article
812 of this Code that is subject to this Section) and has at
9least 10 years of service credit and is otherwise eligible
10under the requirements of the applicable Article may elect to
11receive the lower retirement annuity provided in subsection (d)
12of this Section.
13 (c-5) A person who first becomes a member or a participant
14subject to this Section on or after July 6, 2017 (the effective
15date of Public Act 100-23), notwithstanding any other provision
16of this Code to the contrary, is entitled to a retirement
17annuity under Article 8 or Article 11 upon written application
18if he or she has attained age 65 and has at least 10 years of
19service credit and is otherwise eligible under the requirements
20of Article 8 or Article 11 of this Code, whichever is
21applicable.
22 (d) The retirement annuity of a member or participant who
23is retiring after attaining age 62 (beginning January 1, 2015,
24age 60 with respect to service under Article 12 of this Code
25that is subject to this Section) with at least 10 years of
26service credit shall be reduced by one-half of 1% for each full

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1month that the member's age is under age 67 (beginning January
21, 2015, age 65 with respect to service under Article 12 of
3this Code that is subject to this Section).
4 (d-5) The retirement annuity payable under Article 8 or
5Article 11 to an eligible person subject to subsection (c-5) of
6this Section who is retiring at age 60 with at least 10 years
7of service credit shall be reduced by one-half of 1% for each
8full month that the member's age is under age 65.
9 (d-10) Each person who first became a member or participant
10under Article 8 or Article 11 of this Code on or after January
111, 2011 and prior to the effective date of this amendatory Act
12of the 100th General Assembly shall make an irrevocable
13election either:
14 (i) to be eligible for the reduced retirement age
15 provided in subsections (c-5) and (d-5) of this Section,
16 the eligibility for which is conditioned upon the member or
17 participant agreeing to the increases in employee
18 contributions for age and service annuities provided in
19 subsection (a-5) of Section 8-174 of this Code (for service
20 under Article 8) or subsection (a-5) of Section 11-170 of
21 this Code (for service under Article 11); or
22 (ii) to not agree to item (i) of this subsection
23 (d-10), in which case the member or participant shall
24 continue to be subject to the retirement age provisions in
25 subsections (c) and (d) of this Section and the employee
26 contributions for age and service annuity as provided in

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1 subsection (a) of Section 8-174 of this Code (for service
2 under Article 8) or subsection (a) of Section 11-170 of
3 this Code (for service under Article 11).
4 The election provided for in this subsection shall be made
5between October 1, 2017 and November 15, 2017. A person subject
6to this subsection who makes the required election shall remain
7bound by that election. A person subject to this subsection who
8fails for any reason to make the required election within the
9time specified in this subsection shall be deemed to have made
10the election under item (ii).
11 (e) Any retirement annuity or supplemental annuity shall be
12subject to annual increases on the January 1 occurring either
13on or after the attainment of age 67 (beginning January 1,
142015, age 65 with respect to service under Article 12 of this
15Code that is subject to this Section and beginning on the
16effective date of this amendatory Act of the 100th General
17Assembly, age 65 with respect to service under Article 8 or
18Article 11 for eligible persons who: (i) are subject to
19subsection (c-5) of this Section; or (ii) made the election
20under item (i) of subsection (d-10) of this Section) or the
21first anniversary of the annuity start date, whichever is
22later. Each annual increase shall be calculated at 3% or
23one-half the annual unadjusted percentage increase (but not
24less than zero) in the consumer price index-u for the 12 months
25ending with the September preceding each November 1, whichever
26is less, of the originally granted retirement annuity. If the

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1annual unadjusted percentage change in the consumer price
2index-u for the 12 months ending with the September preceding
3each November 1 is zero or there is a decrease, then the
4annuity shall not be increased.
5 For the purposes of Section 1-103.1 of this Code, the
6changes made to this Section by this amendatory Act of the
7100th General Assembly are applicable without regard to whether
8the employee was in active service on or after the effective
9date of this amendatory Act of the 100th General Assembly.
10 (f) The initial survivor's or widow's annuity of an
11otherwise eligible survivor or widow of a retired member or
12participant who first became a member or participant on or
13after January 1, 2011 shall be in the amount of 66 2/3% of the
14retired member's or participant's retirement annuity at the
15date of death. In the case of the death of a member or
16participant who has not retired and who first became a member
17or participant on or after January 1, 2011, eligibility for a
18survivor's or widow's annuity shall be determined by the
19applicable Article of this Code. The initial benefit shall be
2066 2/3% of the earned annuity without a reduction due to age. A
21child's annuity of an otherwise eligible child shall be in the
22amount prescribed under each Article if applicable. Any
23survivor's or widow's annuity shall be increased (1) on each
24January 1 occurring on or after the commencement of the annuity
25if the deceased member died while receiving a retirement
26annuity or (2) in other cases, on each January 1 occurring

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1after the first anniversary of the commencement of the annuity.
2Each annual increase shall be calculated at 3% or one-half the
3annual unadjusted percentage increase (but not less than zero)
4in the consumer price index-u for the 12 months ending with the
5September preceding each November 1, whichever is less, of the
6originally granted survivor's annuity. If the annual
7unadjusted percentage change in the consumer price index-u for
8the 12 months ending with the September preceding each November
91 is zero or there is a decrease, then the annuity shall not be
10increased.
11 (g) The benefits in Section 14-110 apply only if the person
12is a State policeman, a fire fighter in the fire protection
13service of a department, a conservation police officer, an
14investigator for the Secretary of State, an arson investigator,
15a Commerce Commission police officer, investigator for the
16Department of Revenue or the Illinois Gaming Board, a security
17employee of the Department of Corrections or the Department of
18Juvenile Justice, or a security employee of the Department of
19Innovation and Technology, as those terms are defined in
20subsection (b) and subsection (c) of Section 14-110. A person
21who meets the requirements of this Section is entitled to an
22annuity calculated under the provisions of Section 14-110, in
23lieu of the regular or minimum retirement annuity, only if the
24person has withdrawn from service with not less than 20 years
25of eligible creditable service and has attained age 60,
26regardless of whether the attainment of age 60 occurs while the

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1person is still in service.
2 (h) If a person who first becomes a member or a participant
3of a retirement system or pension fund subject to this Section
4on or after January 1, 2011 is receiving a retirement annuity
5or retirement pension under that system or fund and becomes a
6member or participant under any other system or fund created by
7this Code and is employed on a full-time basis, except for
8those members or participants exempted from the provisions of
9this Section under subsection (a) of this Section, then the
10person's retirement annuity or retirement pension under that
11system or fund shall be suspended during that employment. Upon
12termination of that employment, the person's retirement
13annuity or retirement pension payments shall resume and be
14recalculated if recalculation is provided for under the
15applicable Article of this Code.
16 If a person who first becomes a member of a retirement
17system or pension fund subject to this Section on or after
18January 1, 2012 and is receiving a retirement annuity or
19retirement pension under that system or fund and accepts on a
20contractual basis a position to provide services to a
21governmental entity from which he or she has retired, then that
22person's annuity or retirement pension earned as an active
23employee of the employer shall be suspended during that
24contractual service. A person receiving an annuity or
25retirement pension under this Code shall notify the pension
26fund or retirement system from which he or she is receiving an

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1annuity or retirement pension, as well as his or her
2contractual employer, of his or her retirement status before
3accepting contractual employment. A person who fails to submit
4such notification shall be guilty of a Class A misdemeanor and
5required to pay a fine of $1,000. Upon termination of that
6contractual employment, the person's retirement annuity or
7retirement pension payments shall resume and, if appropriate,
8be recalculated under the applicable provisions of this Code.
9 (i) (Blank).
10 (j) In the case of a conflict between the provisions of
11this Section and any other provision of this Code, the
12provisions of this Section shall control.
13(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
14100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff.
151-4-19; 101-610, eff. 1-1-20.)
16 (40 ILCS 5/7-109.4 new)
17 Sec. 7-109.4. Tier 1 regular employee. "Tier 1 regular
18employee" means a participant or an annuitant under this
19Article who first became a participant or member before January
201, 2011 under any retirement system or pension fund under this
21Code, other than a retirement system or pension fund
22established under Articles 2, 3, 4, 5, 6, or 18 or in any
23self-managed plan established under this Code, or the
24retirement plan established under Section 22-101.
25 "Tier 1 regular employee" includes a person who received a

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1separation benefit but is otherwise qualified under this
2Section and subsequently becomes a participating employee on or
3after January 1, 2011.
4 "Tier 1 regular employee" includes a former participating
5employee who received a separation benefit under Section 7-167
6for service earned prior to January 1, 2011 who returns to a
7qualifying position after January 1, 2011.
8 "Tier 1 regular employee" includes a participating
9employee who has omitted service as defined in Section 7-111.5
10that includes any period prior to January 1, 2011 only if he or
11she establishes sufficient service credit under item (12) of
12subsection (a) of Section 7-139 to include service prior to
13January 1, 2011.
14 Notwithstanding anything contrary in this Section, "Tier 1
15regular employee" does not include a participant or annuitant
16who is eligible to have his or her annuity calculated under
17Section 7-142.1 or a person who elected to establish
18alternative credits under Section 7-145.1.
19 (40 ILCS 5/7-109.5 new)
20 Sec. 7-109.5. Tier 2 regular employee. "Tier 2 regular
21employee" means a person who first becomes a participant under
22this Article on or after January 1, 2011 and is not a Tier 1
23regular employee.
24 Notwithstanding anything contrary in this Section, "Tier 2
25regular employee" does not include a participant or annuitant

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1who is eligible to have his or her annuity calculated under
2Section 7-142.1 or a person who elected to establish
3alternative credits by electing in writing after January 1,
42011, but before August 8, 2011, under Section 7-145.1 of this
5Code.
6 (40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
7 Sec. 7-114. Earnings. "Earnings":
8 (a) An amount to be determined by the board, equal to the
9sum of:
10 1. The total amount of money paid to an employee for
11 personal services or official duties as an employee (except
12 those employed as independent contractors) paid out of the
13 general fund, or out of any special funds controlled by the
14 municipality, or by any instrumentality thereof, or
15 participating instrumentality, including compensation,
16 fees, allowances (but not including amounts associated
17 with a vehicle allowance payable to an employee who first
18 becomes a participating employee on or after the effective
19 date of this amendatory Act of the 100th General Assembly),
20 or other emolument paid for official duties (but not
21 including automobile maintenance, travel expense, or
22 reimbursements for expenditures incurred in the
23 performance of duties) and, for fee offices, the fees or
24 earnings of the offices to the extent such fees are paid
25 out of funds controlled by the municipality, or

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1 instrumentality or participating instrumentality; and
2 2. The money value, as determined by rules prescribed
3 by the governing body of the municipality, or
4 instrumentality thereof, of any board, lodging, fuel,
5 laundry, and other allowances provided an employee in lieu
6 of money.
7 (b) For purposes of determining benefits payable under this
8fund payments to a person who is engaged in an independently
9established trade, occupation, profession or business and who
10is paid for his service on a basis other than a monthly or
11other regular salary, are not earnings.
12 (c) If a disabled participating employee is eligible to
13receive Workers' Compensation for an accidental injury and the
14participating municipality or instrumentality which employed
15the participating employee when injured continues to pay the
16participating employee regular salary or other compensation or
17pays the employee an amount in excess of the Workers'
18Compensation amount, then earnings shall be deemed to be the
19total payments, including an amount equal to the Workers'
20Compensation payments. These payments shall be subject to
21employee contributions and allocated as if paid to the
22participating employee when the regular payroll amounts would
23have been paid if the participating employee had continued
24working, and creditable service shall be awarded for this
25period.
26 (d) If an elected official who is a participating employee

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1becomes disabled but does not resign and is not removed from
2office, then earnings shall include all salary payments made
3for the remainder of that term of office and the official shall
4be awarded creditable service for the term of office.
5 (e) If a participating employee is paid pursuant to "An Act
6to provide for the continuation of compensation for law
7enforcement officers, correctional officers and firemen who
8suffer disabling injury in the line of duty", approved
9September 6, 1973, as amended, the payments shall be deemed
10earnings, and the participating employee shall be awarded
11creditable service for this period.
12 (f) Additional compensation received by a person while
13serving as a supervisor of assessments, assessor, deputy
14assessor or member of a board of review from the State of
15Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
16Code shall not be earnings for purposes of this Article and
17shall not be included in the contribution formula or
18calculation of benefits for such person pursuant to this
19Article.
20 (g) Notwithstanding any other provision of this Article,
21calendar year earnings for Tier 2 regular employees to whom
22this Section applies shall not exceed the amount determined by
23the Public Pension Division of the Department of Insurance as
24required in this subsection; however, that amount shall
25annually thereafter be increased by the lesser of (i) 3% of
26that amount, including all previous adjustments, or (ii)

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1one-half the annual unadjusted percentage increase (but not
2less than zero) in the consumer price index-u for the 12 months
3ending with the September preceding each November 1, including
4all previous adjustments.
5 For the purposes of this Section, "consumer price index-u"
6means the index published by the Bureau of Labor Statistics of
7the United States Department of Labor that measures the average
8change in prices of goods and services purchased by all urban
9consumers, United States city average, all items, 1982-84 =
10100. The new amount resulting from each annual adjustment shall
11be determined by the Public Pension Division of the Department
12of Insurance and made available to the Fund by November 1 of
13each year.
14(Source: P.A. 100-411, eff. 8-25-17.)
15 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
16 (Text of Section WITHOUT the changes made by P.A. 98-599,
17which has been held unconstitutional)
18 Sec. 7-116. "Final rate of earnings":
19 (a) For retirement and survivor annuities, the monthly
20earnings obtained by dividing the total earnings received by
21the employee during the period of either (1) for Tier 1 regular
22employees, the 48 consecutive months of service within the last
23120 months of service in which his total earnings were the
24highest, (2) for Tier 2 regular employees, the 96 consecutive
25months of service within the last 120 months of service in

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1which his total earnings were the highest, or (3) or (2) the
2employee's total period of service, by the number of months of
3service in such period.
4 (b) For death benefits, the higher of the rate determined
5under paragraph (a) of this Section or total earnings received
6in the last 12 months of service divided by twelve. If the
7deceased employee has less than 12 months of service, the
8monthly final rate shall be the monthly rate of pay the
9employee was receiving when he began service.
10 (c) For disability benefits, the total earnings of a
11participating employee in the last 12 calendar months of
12service prior to the date he becomes disabled divided by 12.
13 (d) In computing the final rate of earnings: (1) the
14earnings rate for all periods of prior service shall be
15considered equal to the average earnings rate for the last 3
16calendar years of prior service for which creditable service is
17received under Section 7-139 or, if there is less than 3 years
18of creditable prior service, the average for the total prior
19service period for which creditable service is received under
20Section 7-139; (2) for out of state service and authorized
21leave, the earnings rate shall be the rate upon which service
22credits are granted; (3) periods of military leave shall not be
23considered; (4) the earnings rate for all periods of disability
24shall be considered equal to the rate of earnings upon which
25the employee's disability benefits are computed for such
26periods; (5) the earnings to be considered for each of the

SB2533- 18 -LRB101 16191 RPS 65563 b
1final three months of the final earnings period for persons who
2first became participants before January 1, 2012 and the
3earnings to be considered for each of the final 24 months for
4participants who first become participants on or after January
51, 2012 shall not exceed 125% of the highest earnings of any
6other month in the final earnings period; and (6) the annual
7amount of final rate of earnings shall be the monthly amount
8multiplied by the number of months of service normally required
9by the position in a year.
10(Source: P.A. 97-609, eff. 1-1-12.)
11 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
12 Sec. 7-141. Retirement annuities - Conditions. Retirement
13annuities shall be payable as hereinafter set forth:
14 (a) A participating employee who, regardless of cause, is
15separated from the service of all participating municipalities
16and instrumentalities thereof and participating
17instrumentalities shall be entitled to a retirement annuity
18provided:
19 1. He is at least age 55 if he is a Tier 1 regular
20 employee, he is age 62 if he is a Tier 2 regular employee,
21 or, in the case of a person who is eligible to have his
22 annuity calculated under Section 7-142.1, he is at least
23 age 50;
24 2. He is not entitled to receive earnings for
25 employment in a position requiring him, or entitling him to

SB2533- 19 -LRB101 16191 RPS 65563 b
1 elect, to be a participating employee;
2 3. The amount of his annuity, before the application of
3 paragraph (b) of Section 7-142 is at least $10 per month;
4 4. If he first became a participating employee after
5 December 31, 1961 and is a Tier 1 regular employee, he has
6 at least 8 years of service, or, if he is a Tier 2 regular
7 member, he has at least 10 years of service. This service
8 requirement shall not apply to any participating employee,
9 regardless of participation date, if the General Assembly
10 terminates the Fund.
11 (b) Retirement annuities shall be payable:
12 1. As provided in Section 7-119;
13 2. Except as provided in item 3, upon receipt by the
14 fund of a written application. The effective date may be
15 not more than one year prior to the date of the receipt by
16 the fund of the application;
17 3. Upon attainment of age 70 1/2 if the member (i) is
18 no longer in service, and (ii) is otherwise entitled to an
19 annuity under this Article;
20 4. To the beneficiary of the deceased annuitant for the
21 unpaid amount accrued to date of death, if any.
22(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
23 (40 ILCS 5/7-141.1)
24 Sec. 7-141.1. Early retirement incentive.
25 (a) The General Assembly finds and declares that:

SB2533- 20 -LRB101 16191 RPS 65563 b
1 (1) Units of local government across the State have
2 been functioning under a financial crisis.
3 (2) This financial crisis is expected to continue.
4 (3) Units of local government must depend on additional
5 sources of revenue and, when those sources are not
6 forthcoming, must establish cost-saving programs.
7 (4) An early retirement incentive designed
8 specifically to target highly-paid senior employees could
9 result in significant annual cost savings.
10 (5) The early retirement incentive should be made
11 available only to those units of local government that
12 determine that an early retirement incentive is in their
13 best interest.
14 (6) A unit of local government adopting a program of
15 early retirement incentives under this Section is
16 encouraged to implement personnel procedures to prohibit,
17 for at least 5 years, the rehiring (whether on payroll or
18 by independent contract) of employees who receive early
19 retirement incentives.
20 (7) A unit of local government adopting a program of
21 early retirement incentives under this Section is also
22 encouraged to replace as few of the participating employees
23 as possible and to hire replacement employees for salaries
24 totaling no more than 80% of the total salaries formerly
25 paid to the employees who participate in the early
26 retirement program.

SB2533- 21 -LRB101 16191 RPS 65563 b
1 It is the primary purpose of this Section to encourage
2units of local government that can realize true cost savings,
3or have determined that an early retirement program is in their
4best interest, to implement an early retirement program.
5 (b) Until June 27, 1997 (the effective date of Public Act
690-32) this amendatory Act of 1997, this Section does not apply
7to any employer that is a city, village, or incorporated town,
8nor to the employees of any such employer. Beginning on June
927, 1997 (the effective date of Public Act 90-32) this
10amendatory Act of 1997, any employer under this Article,
11including an employer that is a city, village, or incorporated
12town, may establish an early retirement incentive program for
13its employees under this Section. The decision of a city,
14village, or incorporated town to consider or establish an early
15retirement program is at the sole discretion of that city,
16village, or incorporated town, and nothing in Public Act 90-32
17this amendatory Act of 1997 limits or otherwise diminishes this
18discretion. Nothing contained in this Section shall be
19construed to require a city, village, or incorporated town to
20establish an early retirement program and no city, village, or
21incorporated town may be compelled to implement such a program.
22 The benefits provided in this Section are available only to
23members employed by a participating employer that has filed
24with the Board of the Fund a resolution or ordinance expressly
25providing for the creation of an early retirement incentive
26program under this Section for its employees and specifying the

SB2533- 22 -LRB101 16191 RPS 65563 b
1effective date of the early retirement incentive program.
2Subject to the limitation in subsection (h), an employer may
3adopt a resolution or ordinance providing a program of early
4retirement incentives under this Section at any time.
5 The resolution or ordinance shall be in substantially the
6following form:
7
RESOLUTION (ORDINANCE) NO. ....
8
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
9
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
10
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
11 WHEREAS, Section 7-141.1 of the Illinois Pension Code
12provides that a participating employer may elect to adopt an
13early retirement incentive program offered by the Illinois
14Municipal Retirement Fund by adopting a resolution or
15ordinance; and
16 WHEREAS, The goal of adopting an early retirement program
17is to realize a substantial savings in personnel costs by
18offering early retirement incentives to employees who have
19accumulated many years of service credit; and
20 WHEREAS, Implementation of the early retirement program
21will provide a budgeting tool to aid in controlling payroll
22costs; and
23 WHEREAS, The (name of governing body) has determined that
24the adoption of an early retirement incentive program is in the
25best interests of the (name of participating employer);

SB2533- 23 -LRB101 16191 RPS 65563 b
1therefore be it
2 RESOLVED (ORDAINED) by the (name of governing body) of
3(name of participating employer) that:
4 (1) The (name of participating employer) does hereby adopt
5the Illinois Municipal Retirement Fund early retirement
6incentive program as provided in Section 7-141.1 of the
7Illinois Pension Code. The early retirement incentive program
8shall take effect on (date).
9 (2) In order to help achieve a true cost savings, a person
10who retires under the early retirement incentive program shall
11lose those incentives if he or she later accepts employment
12with any IMRF employer in a position for which participation in
13IMRF is required or is elected by the employee.
14 (3) In order to utilize an early retirement incentive as a
15budgeting tool, the (name of participating employer) will use
16its best efforts either to limit the number of employees who
17replace the employees who retire under the early retirement
18program or to limit the salaries paid to the employees who
19replace the employees who retire under the early retirement
20program.
21 (4) The effective date of each employee's retirement under
22this early retirement program shall be set by (name of
23employer) and shall be no earlier than the effective date of
24the program and no later than one year after that effective
25date; except that the employee may require that the retirement
26date set by the employer be no later than the June 30 next

SB2533- 24 -LRB101 16191 RPS 65563 b
1occurring after the effective date of the program and no
2earlier than the date upon which the employee qualifies for
3retirement.
4 (5) To be eligible for the early retirement incentive under
5this Section, the employee must have attained age 50 and have
6at least 20 years of creditable service by his or her
7retirement date.
8 (6) The (clerk or secretary) shall promptly file a
9certified copy of this resolution (ordinance) with the Board of
10Trustees of the Illinois Municipal Retirement Fund.
11CERTIFICATION
12 I, (name), the (clerk or secretary) of the (name of
13participating employer) of the County of (name), State of
14Illinois, do hereby certify that I am the keeper of the books
15and records of the (name of employer) and that the foregoing is
16a true and correct copy of a resolution (ordinance) duly
17adopted by the (governing body) at a meeting duly convened and
18held on (date).
19SEAL
20(Signature of clerk or secretary)
21 (c) To be eligible for the benefits provided under an early
22retirement incentive program adopted under this Section, a
23member must:
24 (1) be a participating employee of this Fund who, on
25 the effective date of the program, (i) is in active payroll

SB2533- 25 -LRB101 16191 RPS 65563 b
1 status as an employee of a participating employer that has
2 filed the required ordinance or resolution with the Board,
3 (ii) is on layoff status from such a position with a right
4 of re-employment or recall to service, (iii) is on a leave
5 of absence from such a position, or (iv) is on disability
6 but has not been receiving benefits under Section 7-146 or
7 7-150 for a period of more than 2 years from the date of
8 application;
9 (2) have never previously received a retirement
10 annuity under this Article or under the Retirement Systems
11 Reciprocal Act using service credit established under this
12 Article;
13 (3) (blank);
14 (4) have at least 20 years of creditable service in the
15 Fund by the date of retirement, without the use of any
16 creditable service established under this Section;
17 (5) have attained age 50 by the date of retirement if
18 he or she is a Tier 1 regular employee or age 57 if he or
19 she is a Tier 2 regular employee, without the use of any
20 age enhancement received under this Section; and
21 (6) be eligible to receive a retirement annuity under
22 this Article by the date of retirement, for which purpose
23 the age enhancement and creditable service established
24 under this Section may be considered.
25 (d) The employer shall determine the retirement date for
26each employee participating in the early retirement program

SB2533- 26 -LRB101 16191 RPS 65563 b
1adopted under this Section. The retirement date shall be no
2earlier than the effective date of the program and no later
3than one year after that effective date, except that the
4employee may require that the retirement date set by the
5employer be no later than the June 30 next occurring after the
6effective date of the program and no earlier than the date upon
7which the employee qualifies for retirement. The employer shall
8give each employee participating in the early retirement
9program at least 30 days written notice of the employee's
10designated retirement date, unless the employee waives this
11notice requirement.
12 (e) An eligible person may establish up to 5 years of
13creditable service under this Section. In addition, for each
14period of creditable service established under this Section, a
15person shall have his or her age at retirement deemed enhanced
16by an equivalent period.
17 The creditable service established under this Section may
18be used for all purposes under this Article and the Retirement
19Systems Reciprocal Act, except for the computation of final
20rate of earnings and the determination of earnings, salary, or
21compensation under this or any other Article of the Code.
22 The age enhancement established under this Section may be
23used for all purposes under this Article (including calculation
24of the reduction imposed under subdivision (a)1b(iv) of Section
257-142), except for purposes of a reversionary annuity under
26Section 7-145 and any distributions required because of age.

SB2533- 27 -LRB101 16191 RPS 65563 b
1The age enhancement established under this Section may be used
2in calculating a proportionate annuity payable by this Fund
3under the Retirement Systems Reciprocal Act, but shall not be
4used in determining benefits payable under other Articles of
5this Code under the Retirement Systems Reciprocal Act.
6 (f) For all creditable service established under this
7Section, the member must pay to the Fund an employee
8contribution consisting of the total employee contribution
9rate in effect at the time the member purchases the service for
10the plan in which the member was participating with the
11employer at that time multiplied by the member's highest annual
12salary rate used in the determination of the final rate of
13earnings for retirement annuity purposes for each year of
14creditable service granted under this Section. Contributions
15for fractions of a year of service shall be prorated. Any
16amounts that are disregarded in determining the final rate of
17earnings under subdivision (d)(5) of Section 7-116 (the 125%
18rule) shall also be disregarded in determining the required
19contribution under this subsection (f).
20 The employee contribution shall be paid to the Fund as
21follows: If the member is entitled to a lump sum payment for
22accumulated vacation, sick leave, or personal leave upon
23withdrawal from service, the employer shall deduct the employee
24contribution from that lump sum and pay the deducted amount
25directly to the Fund. If there is no such lump sum payment or
26the required employee contribution exceeds the net amount of

SB2533- 28 -LRB101 16191 RPS 65563 b
1the lump sum payment, then the remaining amount due, at the
2option of the employee, may either be paid to the Fund before
3the annuity commences or deducted from the retirement annuity
4in 24 equal monthly installments.
5 (g) An annuitant who has received any age enhancement or
6creditable service under this Section and thereafter accepts
7employment with or enters into a personal services contract
8with an employer under this Article thereby forfeits that age
9enhancement and creditable service; except that this
10restriction does not apply to (1) service in an elective
11office, so long as the annuitant does not participate in this
12Fund with respect to that office, (2) a person appointed as an
13officer under subsection (f) of Section 3-109 of this Code, and
14(3) a person appointed as an auxiliary police officer pursuant
15to Section 3.1-30-5 of the Illinois Municipal Code. A person
16forfeiting early retirement incentives under this subsection
17(i) must repay to the Fund that portion of the retirement
18annuity already received which is attributable to the early
19retirement incentives that are being forfeited, (ii) shall not
20be eligible to participate in any future early retirement
21program adopted under this Section, and (iii) is entitled to a
22refund of the employee contribution paid under subsection (f).
23The Board shall deduct the required repayment from the refund
24and may impose a reasonable payment schedule for repaying the
25amount, if any, by which the required repayment exceeds the
26refund amount.

SB2533- 29 -LRB101 16191 RPS 65563 b
1 (h) The additional unfunded liability accruing as a result
2of the adoption of a program of early retirement incentives
3under this Section by an employer shall be amortized over a
4period of 10 years beginning on January 1 of the second
5calendar year following the calendar year in which the latest
6date for beginning to receive a retirement annuity under the
7program (as determined by the employer under subsection (d) of
8this Section) occurs; except that the employer may provide for
9a shorter amortization period (of no less than 5 years) by
10adopting an ordinance or resolution specifying the length of
11the amortization period and submitting a certified copy of the
12ordinance or resolution to the Fund no later than 6 months
13after the effective date of the program. An employer, at its
14discretion, may accelerate payments to the Fund.
15 An employer may provide more than one early retirement
16incentive program for its employees under this Section.
17However, an employer that has provided an early retirement
18incentive program for its employees under this Section may not
19provide another early retirement incentive program under this
20Section until the liability arising from the earlier program
21has been fully paid to the Fund.
22(Source: P.A. 99-382, eff. 8-17-15.)
23 (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
24 Sec. 7-142. Retirement annuities - Amount.
25 (a) The amount of a retirement annuity shall be the sum of

SB2533- 30 -LRB101 16191 RPS 65563 b
1the following, determined in accordance with the actuarial
2tables in effect at the time of the grant of the annuity:
3 1. For Tier 1 regular employees with 8 or more years of
4 service or for Tier 2 regular employees, an annuity
5 computed pursuant to subparagraphs a or b of this
6 subparagraph 1, whichever is the higher, and for employees
7 with less than 8 or 10 years of service, respectively, the
8 annuity computed pursuant to subparagraph a:
9 a. The monthly annuity which can be provided from
10 the total accumulated normal, municipality and prior
11 service credits, as of the attained age of the employee
12 on the date the annuity begins provided that such
13 annuity shall not exceed 75% of the final rate of
14 earnings of the employee.
15 b. (i) The monthly annuity amount determined as
16 follows by multiplying (a) 1 2/3% for annuitants with
17 not more than 15 years or (b) 1 2/3% for the first 15
18 years and 2% for each year in excess of 15 years for
19 annuitants with more than 15 years by the number of
20 years plus fractional years, prorated on a basis of
21 months, of creditable service and multiply the product
22 thereof by the employee's final rate of earnings.
23 (ii) For the sole purpose of computing the formula
24 (and not for the purposes of the limitations
25 hereinafter stated) $125 shall be considered the final
26 rate of earnings in all cases where the final rate of

SB2533- 31 -LRB101 16191 RPS 65563 b
1 earnings is less than such amount.
2 (iii) The monthly annuity computed in accordance
3 with this subparagraph b, shall not exceed an amount
4 equal to 75% of the final rate of earnings.
5 (iv) For employees who have less than 35 years of
6 service, the annuity computed in accordance with this
7 subparagraph b (as reduced by application of
8 subparagraph (iii) above) shall be reduced by 0.25%
9 thereof (0.5% if service was terminated before January
10 1, 1988 or if the employee is a Tier 2 regular
11 employee) for each month or fraction thereof (1) that
12 the employee's age is less than 60 years for Tier 1
13 regular employees, or (2) that the employee's age is
14 less than 67 years for Tier 2 regular employees, or (3)
15 if the employee has at least 30 years of service
16 credit, that the employee's service credit is less than
17 35 years, whichever is less, on the date the annuity
18 begins.
19 2. The annuity which can be provided from the total
20 accumulated additional credits as of the attained age of
21 the employee on the date the annuity begins.
22 (b) If payment of an annuity begins prior to the earliest
23age at which the employee will become eligible for an old age
24insurance benefit under the Federal Social Security Act, he may
25elect that the annuity payments from this fund shall exceed
26those payable after his attaining such age by an amount,

SB2533- 32 -LRB101 16191 RPS 65563 b
1computed as determined by rules of the Board, but not in excess
2of his estimated Social Security Benefit, determined as of the
3effective date of the annuity, provided that in no case shall
4the total annuity payments made by this fund exceed in
5actuarial value the annuity which would have been payable had
6no such election been made.
7 (c) The retirement annuity shall be increased each year by
82%, not compounded, of the monthly amount of annuity, taking
9into consideration any adjustment under paragraph (b) of this
10Section. This increase shall be effective each January 1 and
11computed from the effective date of the retirement annuity, the
12first increase being .167% of the monthly amount times the
13number of months from the effective date to January 1.
14Beginning January 1, 1984 and each January 1 thereafter, the
15retirement annuity of a Tier 1 regular employee shall be
16increased by 3% each year, not compounded. This increase shall
17be computed from the effective date of the retirement annuity,
18the first increase being 0.25% of the monthly amount times the
19number of months from the effective date to January 1. This
20increase shall not be applicable to annuitants who are not in
21service on or after September 8, 1971.
22 A retirement annuity of a Tier 2 regular employee shall
23receive annual increases on the January 1 occurring either on
24or after the attainment of age 67 or the first anniversary of
25the annuity start date, whichever is later. Each annual
26increase shall be calculated at the lesser of 3% or one-half

SB2533- 33 -LRB101 16191 RPS 65563 b
1the annual unadjusted percentage increase (but not less than
2zero) in the consumer price index-u for the 12 months ending
3with the September preceding each November 1 of the originally
4granted retirement annuity. If the annual unadjusted
5percentage change in the consumer price index-u for the 12
6months ending with the September preceding each November 1 is
7zero or there is a decrease, then the annuity shall not be
8increased.
9 (d) Any elected county officer who was entitled to receive
10a stipend from the State on or after July 1, 2009 and on or
11before June 30, 2010 may establish earnings credit for the
12amount of stipend not received, if the elected county official
13applies in writing to the fund within 6 months after the
14effective date of this amendatory Act of the 96th General
15Assembly and pays to the fund an amount equal to (i) employee
16contributions on the amount of stipend not received, (ii)
17employer contributions determined by the Board equal to the
18employer's normal cost of the benefit on the amount of stipend
19not received, plus (iii) interest on items (i) and (ii) at the
20actuarially assumed rate.
21(Source: P.A. 96-961, eff. 7-2-10.)
22 (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
23 Sec. 7-144. Retirement annuities - suspended during
24employment.
25 (a) If any person receiving any annuity again becomes an

SB2533- 34 -LRB101 16191 RPS 65563 b
1employee and receives earnings from employment in a position
2requiring him, or entitling him to elect, to become a
3participating employee, then the annuity payable to such
4employee shall be suspended as of the 1st day of the month
5coincidental with or next following the date upon which such
6person becomes such an employee, unless the person is
7authorized under subsection (b) of Section 7-137.1 of this Code
8to continue receiving a retirement annuity during that period.
9Upon proper qualification of the participating employee
10payment of such annuity may be resumed on the 1st day of the
11month following such qualification and upon proper application
12therefor. The participating employee in such case shall be
13entitled to a supplemental annuity arising from service and
14credits earned subsequent to such re-entry as a participating
15employee.
16 Notwithstanding any other provision of this Article, an
17annuitant shall be considered a participating employee if he or
18she returns to work as an employee with a participating
19employer and works more than 599 hours annually (or 999 hours
20annually with a participating employer that has adopted a
21resolution pursuant to subsection (e) of Section 7-137 of this
22Code). Each of these annual periods shall commence on the month
23and day upon which the annuitant is first employed with the
24participating employer following the effective date of the
25annuity.
26 (a-5) If any annuitant under this Article must be

SB2533- 35 -LRB101 16191 RPS 65563 b
1considered a participating employee per the provisions of
2subsection (a) of this Section, and the participating
3municipality or participating instrumentality that employs or
4re-employs that annuitant knowingly fails to notify the Board
5to suspend the annuity, the participating municipality or
6participating instrumentality may be required to reimburse the
7Fund for an amount up to one-half of the total of any annuity
8payments made to the annuitant after the date the annuity
9should have been suspended, as determined by the Board. In no
10case shall the total amount repaid by the annuitant plus any
11amount reimbursed by the employer to the Fund be more than the
12total of all annuity payments made to the annuitant after the
13date the annuity should have been suspended. This subsection
14shall not apply if the annuitant returned to work for the
15employer for less than 12 months.
16 The Fund shall notify all annuitants that they must notify
17the Fund immediately if they return to work for any
18participating employer. The notification by the Fund shall
19occur upon retirement and no less than annually thereafter in a
20format determined by the Fund. The Fund shall also develop and
21maintain a system to track annuitants who have returned to work
22and notify the participating employer and annuitant at least
23annually of the limitations on returning to work under this
24Section.
25 (b) Supplemental annuities to persons who return to service
26for less than 48 months shall be computed under the provisions

SB2533- 36 -LRB101 16191 RPS 65563 b
1of Sections 7-141, 7-142 and 7-143. In determining whether an
2employee is eligible for an annuity which requires a minimum
3period of service, his entire period of service shall be taken
4into consideration but the supplemental annuity shall be based
5on earnings and service in the supplemental period only. The
6effective date of the suspended and supplemental annuity for
7the purpose of increases after retirement shall be considered
8to be the effective date of the suspended annuity.
9 (c) Supplemental annuities to persons who return to service
10for 48 months or more shall be a monthly amount determined as
11follows:
12 (1) An amount shall be computed under subparagraph b of
13 paragraph (1) of subsection (a) of Section 7-142,
14 considering all of the service credits of the employee;
15 (2) The actuarial value in monthly payments for life of
16 the annuity payments made before suspension shall be
17 determined and subtracted from the amount determined in (1)
18 above;
19 (3) The monthly amount of the suspended annuity, with
20 any applicable increases after retirement computed from
21 the effective date to the date of reinstatement, shall be
22 subtracted from the amount determined in (2) above and the
23 remainder shall be the amount of the supplemental annuity
24 provided that this amount shall not be less than the amount
25 computed under subsection (b) of this Section.
26 (4) The suspended annuity shall be reinstated at an

SB2533- 37 -LRB101 16191 RPS 65563 b
1 amount including any increases after retirement from the
2 effective date to date of reinstatement.
3 (5) The effective date of the combined suspended and
4 supplemental annuities for the purposes of increases after
5 retirement shall be considered to be the effective date of
6 the supplemental annuity.
7 (d) If a Tier 2 regular employee becomes a member or
8participant under any other system or fund created by this Code
9and is employed on a full-time basis, except for those members
10or participants exempted from the provisions of subsection (a)
11of Section 1-160 of this Code (other than a participating
12employee under this Article), then the person's retirement
13annuity shall be suspended during that employment. Upon
14termination of that employment, the person's retirement
15annuity shall resume and be recalculated as required by this
16Section.
17 (e) If a Tier 2 regular employee first began participation
18on or after January 1, 2012 and is receiving a retirement
19annuity and accepts on a contractual basis a position to
20provide services to a governmental entity from which he or she
21has retired, then that person's annuity or retirement pension
22shall be suspended during that contractual service,
23notwithstanding the provisions of any other Section in this
24Article. Such annuitant shall notify the Fund, as well as his
25or her contractual employer, of his or her retirement status
26before accepting contractual employment. A person who fails to

SB2533- 38 -LRB101 16191 RPS 65563 b
1submit such notification shall be guilty of a Class A
2misdemeanor and required to pay a fine of $1,000. Upon
3termination of that contractual employment, the person's
4retirement annuity shall resume and be recalculated as required
5by this Section.
6(Source: P.A. 98-389, eff. 8-16-13; 99-745, eff. 8-5-16.)
7 (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
8 Sec. 7-156. Surviving spouse annuities - amount.
9 (a) The amount of surviving spouse annuity shall be:
10 1. Upon the death of an employee annuitant or such person
11entitled, upon application, to a retirement annuity at date of
12death, (i) an amount equal to 1/2 50% for a Tier 1 regular
13employee or 66 2/3% for a Tier 2 regular employee of the
14retirement annuity which was or would have been payable
15exclusive of the amount so payable which was provided from
16additional credits, and disregarding any election made under
17paragraph (b) of Section 7-142, plus (ii) an annuity which
18could be provided at the then attained age of the surviving
19spouse and under actuarial tables then in effect, from the
20excess of the additional credits, (excluding any such credits
21used to create a reversionary annuity) used to provide the
22annuity granted pursuant to paragraph (a) (2) of Section 7-142
23of this article over the total annuity payments made pursuant
24thereto.
25 2. Upon the death of a participating employee on or after

SB2533- 39 -LRB101 16191 RPS 65563 b
1attainment of age 55, an amount equal to 1/2 50% for a Tier 1
2regular employee or 66 2/3% for a Tier 2 regular employee of
3the retirement annuity which he could have had as of the date
4of death had he then retired and applied for annuity, exclusive
5of the portion thereof which could have been provided from
6additional credits, and disregarding paragraph (b) of Section
77-142, plus an amount equal to the annuity which could be
8provided from the total of his accumulated additional credits
9at date of death, on the basis of the attained age of the
10surviving spouse on such date.
11 3. Upon the death of a participating employee before age
1255, an amount equal to 1/2 50% for a Tier 1 regular employee or
1366 2/3% for a Tier 2 regular employee of the retirement annuity
14which he could have had as of his attained age on the date of
15death, had he then retired and applied for annuity, and the
16provisions of this Article that no such annuity shall begin
17until the employee has attained at least age 55 were not
18applicable, exclusive of the portion thereof which could have
19been provided from additional credits and disregarding
20paragraph (b) of Section 7-142, plus an amount equal to the
21annuity which could be provided from the total of his
22accumulated additional credits at date of death, on the basis
23of the attained age of the surviving spouse on such date.
24 In the case of the surviving spouse of a person who dies
25before June 1, 2006 (the effective date of Public Act 94-712)
26this amendatory Act of the 94th General Assembly, if the

SB2533- 40 -LRB101 16191 RPS 65563 b
1surviving spouse is more than 5 years younger than the
2deceased, that portion of the annuity which is not based on
3additional credits shall be reduced in the ratio of the value
4of a life annuity of $1 per year at an age of 5 years less than
5the attained age of the deceased, at the earlier of the date of
6the death or the date his retirement annuity begins, to the
7value of a life annuity of $1 per year at the attained age of
8the surviving spouse on such date, according to actuarial
9tables approved by the Board. This reduction does not apply to
10the surviving spouse of a person who dies on or after June 1,
112006 (the effective date of Public Act 94-712) this amendatory
12Act of the 94th General Assembly.
13 In computing the amount of a surviving spouse annuity,
14incremental increases of retirement annuities to the date of
15death of the employee annuitant shall be considered.
16 (b) If the employee was a Tier 1 regular employee, each
17Each surviving spouse annuity payable on January 1, 1988 shall
18be increased on that date by 3% of the original amount of the
19annuity. Each surviving spouse annuity that begins after
20January 1, 1988 shall be increased on the January 1 next
21occurring after the annuity begins, by an amount equal to (i)
223% of the original amount thereof if the deceased employee was
23receiving a retirement annuity at the time of his death;
24otherwise (ii) 0.25% 0.167% of the original amount thereof for
25each complete month which has elapsed since the date the
26annuity began.

SB2533- 41 -LRB101 16191 RPS 65563 b
1 On each January 1 after the date of the initial increase
2under this subsection, each surviving spouse annuity shall be
3increased by 3% of the originally granted amount of the
4annuity.
5 (c) If the participating employee was a Tier 2 regular
6employee, each surviving spouse annuity shall be increased (1)
7on each January 1 occurring on or after the commencement of the
8annuity if the deceased member died while receiving a
9retirement annuity or (2) in other cases, on each January 1
10occurring after the first anniversary of the commencement of
11the annuity. Such annual increase shall be calculated at 3% or
12one-half the annual unadjusted percentage increase (but not
13less than zero) in the consumer price index-u for the 12 months
14ending with the September preceding each November 1, whichever
15is less, of the originally granted surviving spouse annuity. If
16the annual unadjusted percentage change in the consumer price
17index-u for the 12 months ending with the September preceding
18each November 1 is zero or there is a decrease, then the
19annuity shall not be increased.
20(Source: P.A. 94-712, eff. 6-1-06.)
21 Section 90. The State Mandates Act is amended by adding
22Section 8.44 as follows:
23 (30 ILCS 805/8.44 new)
24 Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8

SB2533- 42 -LRB101 16191 RPS 65563 b
1of this Act, no reimbursement by the State is required for the
2implementation of any mandate created by this amendatory Act of
3the 101st General Assembly.

SB2533- 43 -LRB101 16191 RPS 65563 b
1 INDEX
2 Statutes amended in order of appearance