Bill Text: IL SB3132 | 2013-2014 | 98th General Assembly | Introduced
Bill Title: Amends the General Assembly Article of the Illinois Pension Code. Provides that the provision concerning automatic increases in retirement annuity applicable to eligible participants who remain in service after attaining 20 years of creditable service does not apply to any person who retires after the effective date of the amendatory Act. Contains a nonacceleration provision.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2015-01-13 - Session Sine Die [SB3132 Detail]
Download: Illinois-2013-SB3132-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Section 2-119.1 as follows:
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6 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
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7 | (Text of Section before amendment by P.A. 98-599 )
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8 | Sec. 2-119.1. Automatic increase in retirement annuity.
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9 | (a) A participant who retires after June 30, 1967, and who | ||||||||||||||||||||||||
10 | has not
received an initial increase under this Section before | ||||||||||||||||||||||||
11 | the effective date
of this amendatory Act of 1991, shall, in | ||||||||||||||||||||||||
12 | January or July next following
the first anniversary of | ||||||||||||||||||||||||
13 | retirement, whichever occurs first, and in the same
month of | ||||||||||||||||||||||||
14 | each year thereafter, but in no event prior to age 60, have the | ||||||||||||||||||||||||
15 | amount
of the originally granted retirement annuity increased | ||||||||||||||||||||||||
16 | as follows: for each
year through 1971, 1 1/2%; for each year | ||||||||||||||||||||||||
17 | from 1972 through 1979, 2%; and for
1980 and each year | ||||||||||||||||||||||||
18 | thereafter, 3%. Annuitants who have received an initial
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19 | increase under this subsection prior to the effective date of | ||||||||||||||||||||||||
20 | this amendatory
Act of 1991 shall continue to receive their | ||||||||||||||||||||||||
21 | annual increases in the same month
as the initial increase.
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22 | (b) Beginning January 1, 1990, for eligible participants | ||||||||||||||||||||||||
23 | who remain
in service after attaining 20 years of creditable |
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1 | service, the 3% increases
provided under subsection (a) shall | ||||||
2 | begin to accrue on the January 1 next
following the date upon | ||||||
3 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
4 | years of creditable service, whichever occurs later, and shall
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5 | continue to accrue while the participant remains in service; | ||||||
6 | such increases
shall become payable on January 1 or July 1, | ||||||
7 | whichever occurs first, next
following the first anniversary of | ||||||
8 | retirement. For any person who has service
credit in the System | ||||||
9 | for the entire period from January 15, 1969 through
December | ||||||
10 | 31, 1992, regardless of the date of termination of service, the
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11 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
12 | be deemed to
mean age 50.
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13 | This subsection (b) does not apply to any person who first | ||||||
14 | becomes a
member of the System after the effective date of this | ||||||
15 | amendatory Act of
the 93rd General Assembly.
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16 | This subsection (b) does not apply to any person who | ||||||
17 | retires after the effective date of this amendatory Act of
the | ||||||
18 | 98th General Assembly. | ||||||
19 | (b-5) Notwithstanding any other provision of this Article, | ||||||
20 | a participant who first becomes a participant on or after | ||||||
21 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
22 | shall, in January or July next following the first anniversary | ||||||
23 | of retirement, whichever occurs first, and in the same month of | ||||||
24 | each year thereafter, but in no event prior to age 67, have the | ||||||
25 | amount of the retirement annuity then being paid increased by | ||||||
26 | 3% or the annual unadjusted percentage increase in the Consumer |
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1 | Price Index for All Urban Consumers as determined by the Public | ||||||
2 | Pension Division of the Department of Insurance under | ||||||
3 | subsection (a) of Section 2-108.1, whichever is less. | ||||||
4 | (c) The foregoing provisions relating to automatic | ||||||
5 | increases are not
applicable to a participant who retires | ||||||
6 | before having made contributions
(at the rate prescribed in | ||||||
7 | Section 2-126) for automatic increases for less
than the | ||||||
8 | equivalent of one full year. However, in order to be eligible | ||||||
9 | for
the automatic increases, such a participant may make | ||||||
10 | arrangements to pay
to the system the amount required to bring | ||||||
11 | the total contributions for the
automatic increase to the | ||||||
12 | equivalent of one year's contributions based upon
his or her | ||||||
13 | last salary.
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14 | (d) A participant who terminated service prior to July 1, | ||||||
15 | 1967, with at
least 14 years of service is entitled to an | ||||||
16 | increase in retirement annuity
beginning January, 1976, and to | ||||||
17 | additional increases in January of each
year thereafter.
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18 | The initial increase shall be 1 1/2% of the originally | ||||||
19 | granted retirement
annuity multiplied by the number of full | ||||||
20 | years that the annuitant was in
receipt of such annuity prior | ||||||
21 | to January 1, 1972, plus 2% of the originally
granted | ||||||
22 | retirement annuity for each year after that date. The | ||||||
23 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
24 | originally granted
retirement annuity for each year through | ||||||
25 | 1979 and at the rate of 3% for
1980 and thereafter.
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26 | (e) Beginning January 1, 1990, all automatic annual |
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1 | increases payable
under this Section shall be calculated as a | ||||||
2 | percentage of the total annuity
payable at the time of the | ||||||
3 | increase, including previous increases granted
under this | ||||||
4 | Article.
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5 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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6 | (Text of Section after amendment by P.A. 98-599 )
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7 | Sec. 2-119.1. Automatic increase in retirement annuity.
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8 | (a) Except as otherwise provided in this Section, a | ||||||
9 | participant who retires after June 30, 1967, and who has not
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10 | received an initial increase under this Section before the | ||||||
11 | effective date
of this amendatory Act of 1991, shall, in | ||||||
12 | January or July next following
the first anniversary of | ||||||
13 | retirement, whichever occurs first, and in the same
month of | ||||||
14 | each year thereafter, but in no event prior to age 60, have the | ||||||
15 | amount
of the originally granted retirement annuity increased | ||||||
16 | as follows: for each
year through 1971, 1 1/2%; for each year | ||||||
17 | from 1972 through 1979, 2%; and for
1980 and each year | ||||||
18 | thereafter, 3%. Annuitants who have received an initial
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19 | increase under this subsection prior to the effective date of | ||||||
20 | this amendatory
Act of 1991 shall continue to receive their | ||||||
21 | annual increases in the same month
as the initial increase.
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22 | (a-1) Notwithstanding subsection (a), but subject to the | ||||||
23 | provisions of subsection (a-2), for a Tier 1 retiree, all | ||||||
24 | automatic increases payable under subsection (a) on or after | ||||||
25 | the effective date of this amendatory Act of the 98th General |
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1 | Assembly shall be calculated as 3% of the lesser of (1) the | ||||||
2 | total annuity
payable at the time of the increase, including | ||||||
3 | previous
increases granted, or (2) $1,000 multiplied by the | ||||||
4 | number of years of creditable service upon which the annuity is | ||||||
5 | based. | ||||||
6 | Beginning January 1, 2016, the $1,000 referred to in item | ||||||
7 | (2) of this subsection (a-1) shall be increased on each January | ||||||
8 | 1 by the annual unadjusted percentage increase (but not less | ||||||
9 | than zero) in the consumer price index-u for the 12 months | ||||||
10 | ending with the preceding September; these adjustments shall be | ||||||
11 | cumulative and compounded.
For the purposes of this subsection | ||||||
12 | (a-1), "consumer price index-u" means the index published by | ||||||
13 | the Bureau of Labor Statistics of the United States Department | ||||||
14 | of Labor that measures the average change in prices of goods | ||||||
15 | and services purchased by all urban consumers, United States | ||||||
16 | city average, all items, 1982-84 = 100. The new dollar amount | ||||||
17 | resulting from each annual adjustment shall be determined by | ||||||
18 | the Public Pension Division of the Department of Insurance and | ||||||
19 | made available to the System by November 1 of each year. | ||||||
20 | This subsection (a-1) is applicable without regard to | ||||||
21 | whether the person is in service on or after the effective date | ||||||
22 | of this amendatory Act of the 98th General Assembly. | ||||||
23 | (a-2) Notwithstanding subsections (a) and (a-1), for an | ||||||
24 | active or inactive Tier 1 participant who has not begun to | ||||||
25 | receive a retirement annuity under this Article before July 1, | ||||||
26 | 2014: |
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1 | (1) the second automatic annual increase payable under | ||||||
2 | subsection (a) shall be at the rate of 0% of the total | ||||||
3 | annuity payable at the time of the increase if he or she is | ||||||
4 | at least age 50 on the effective date of this amendatory | ||||||
5 | Act; | ||||||
6 | (2) the second, fourth, and sixth automatic annual | ||||||
7 | increases payable under subsection (a) shall be at the rate | ||||||
8 | of 0% of the total annuity payable at the time of the | ||||||
9 | increase if he or she is at least age 47 but less than age | ||||||
10 | 50 on the effective date of this amendatory Act; | ||||||
11 | (3) the second, fourth, sixth, and eighth automatic | ||||||
12 | annual increases payable under subsection (a) shall be at | ||||||
13 | the rate of 0% of the total annuity payable at the time of | ||||||
14 | the increase if he or she is at least age 44 but less than | ||||||
15 | age 47 on the effective date of this amendatory Act; and | ||||||
16 | (4) the second, fourth, sixth, eighth, and tenth | ||||||
17 | automatic annual increases payable under subsection (a) | ||||||
18 | shall be at the rate of 0% of the total annuity payable at | ||||||
19 | the time of the increase if he or she is less than age 44 on | ||||||
20 | the effective date of this amendatory Act. | ||||||
21 | For the purposes of Section 1-103.1, this subsection (a-2) | ||||||
22 | is applicable without regard to whether the person is in | ||||||
23 | service on or after the effective date of this amendatory Act | ||||||
24 | of the 98th General Assembly. | ||||||
25 | (b) Beginning January 1, 1990, for eligible participants | ||||||
26 | who remain
in service after attaining 20 years of creditable |
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1 | service, the increases
provided under subsection (a) shall | ||||||
2 | begin to accrue on the January 1 next
following the date upon | ||||||
3 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
4 | years of creditable service, whichever occurs later, and shall
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5 | continue to accrue while the participant remains in service; | ||||||
6 | such increases
shall become payable on January 1 or July 1, | ||||||
7 | whichever occurs first, next
following the first anniversary of | ||||||
8 | retirement. For any person who has service
credit in the System | ||||||
9 | for the entire period from January 15, 1969 through
December | ||||||
10 | 31, 1992, regardless of the date of termination of service, the
| ||||||
11 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
12 | be deemed to
mean age 50. The increases accruing under this | ||||||
13 | subsection (b) after the effective date of this amendatory Act | ||||||
14 | of the 98th General Assembly shall accrue at the rate provided | ||||||
15 | in subsection (a-1).
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16 | This subsection (b) does not apply to any person who first | ||||||
17 | becomes a
member of the System after the effective date of this | ||||||
18 | amendatory Act of
the 93rd General Assembly.
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19 | This subsection (b) does not apply to any person who | ||||||
20 | retires after the effective date of this amendatory Act of
the | ||||||
21 | 98th General Assembly. | ||||||
22 | (b-5) Notwithstanding any other provision of this Section, | ||||||
23 | a participant who first becomes a participant on or after | ||||||
24 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
25 | shall, in January or July next following the first anniversary | ||||||
26 | of retirement, whichever occurs first, and in the same month of |
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1 | each year thereafter, but in no event prior to age 67, have the | ||||||
2 | amount of the retirement annuity then being paid increased by | ||||||
3 | an amount calculated as a percentage of the originally granted | ||||||
4 | retirement annuity, equal to 3% or one-half of the annual | ||||||
5 | unadjusted percentage increase (but not less than zero) in the | ||||||
6 | Consumer Price Index for All Urban Consumers for the 12 months | ||||||
7 | ending with the preceding September, as determined by the | ||||||
8 | Public Pension Division of the Department of Insurance and | ||||||
9 | reported to the System by November 1 of each year, whichever is | ||||||
10 | less. | ||||||
11 | The changes made to this subsection (b-5) by this | ||||||
12 | amendatory Act of the 98th General Assembly shall apply to | ||||||
13 | increases provided under this subsection on or after the | ||||||
14 | effective date of this amendatory Act without regard to whether | ||||||
15 | service
terminated before that effective date. | ||||||
16 | (c) The foregoing provisions relating to automatic | ||||||
17 | increases are not
applicable to a participant who retires | ||||||
18 | before having made contributions
(at the rate prescribed in | ||||||
19 | Section 2-126) for automatic increases for less
than the | ||||||
20 | equivalent of one full year. However, in order to be eligible | ||||||
21 | for
the automatic increases, such a participant may make | ||||||
22 | arrangements to pay
to the system the amount required to bring | ||||||
23 | the total contributions for the
automatic increase to the | ||||||
24 | equivalent of one year's contributions based upon
his or her | ||||||
25 | last salary.
| ||||||
26 | (d) A participant who terminated service prior to July 1, |
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1 | 1967, with at
least 14 years of service is entitled to an | ||||||
2 | increase in retirement annuity
beginning January, 1976, and to | ||||||
3 | additional increases in January of each
year thereafter.
| ||||||
4 | The initial increase shall be 1 1/2% of the originally | ||||||
5 | granted retirement
annuity multiplied by the number of full | ||||||
6 | years that the annuitant was in
receipt of such annuity prior | ||||||
7 | to January 1, 1972, plus 2% of the originally
granted | ||||||
8 | retirement annuity for each year after that date. The | ||||||
9 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
10 | originally granted
retirement annuity for each year through | ||||||
11 | 1979 and at the rate of 3% for
1980 and thereafter. The | ||||||
12 | increases provided under this subsection (d) on or after the | ||||||
13 | effective date of this amendatory Act of the 98th General | ||||||
14 | Assembly shall be at the rate provided in subsection (a-1), | ||||||
15 | notwithstanding that service
terminated before that effective | ||||||
16 | date.
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17 | (e) Except as may be provided in subsection (b-5), | ||||||
18 | beginning January 1, 1990, all automatic annual increases | ||||||
19 | payable
under this Section shall be calculated as a percentage | ||||||
20 | of the total annuity
payable at the time of the increase, | ||||||
21 | including previous increases granted
under this Article.
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22 | (Source: P.A. 98-599, eff. 6-1-14.)
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23 | Section 95. No acceleration or delay. Where this Act makes | ||||||
24 | changes in a statute that is represented in this Act by text | ||||||
25 | that is not yet or no longer in effect (for example, a Section |
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1 | represented by multiple versions), the use of that text does | ||||||
2 | not accelerate or delay the taking effect of (i) the changes | ||||||
3 | made by this Act or (ii) provisions derived from any other | ||||||
4 | Public Act.
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