40 ILCS 5/11-134
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 11 - Laborers' And Retirement Board Employees' Annuity And Benefit Fund--Cities Over 500,000 Inhabitants

 (from Ch. 108 1/2, par. 11-134)Sec. 11-134. Minimum annuities.(a) An employee whose withdrawal occurs after July 1, 1957 at age 60 or  over, with 20 or more years of service, (as service is defined or computed  in Section 11-216), for whom the age and service and prior service annuity  combined is less than the amount stated in this Section, shall, from and  after the date of withdrawal, in lieu of all annuities otherwise provided  in this Article, be entitled to receive an annuity for life of an amount  equal to 1 2/3% for each year of service, of the highest average annual  salary for any 5 consecutive years within the last 10 years of service  immediately preceding the date of withdrawal; provided, that in the case of  any employee who withdraws on or after July 1, 1971, such employee age 60  or over with 20 or more years of service, shall be entitled to instead  receive an annuity for life equal to 1.67% for each of the first 10 years  of service; 1.90% for each of the next 10 years of service; 2.10% for each  year of service in excess of 20 but not exceeding 30; and 2.30% for each  year of service in excess of 30, based on the highest average annual salary  for any 4 consecutive years within the last 10 years of service immediately  preceding the date of withdrawal.An employee who withdraws after July 1, 1957 and before January 1,  1988, with 20 or more years of service, before age 60, shall be entitled to  an annuity, to begin not earlier than age 55, if under such age at  withdrawal, as computed in the last preceding paragraph, reduced 0.25% if  the employee was born before January 1, 1936, or 0.5% if the employee was  born on or after January 1, 1936, for each full month or fractional part  thereof that his attained age when such annuity is to begin is less than 60.Any employee born before January 1, 1936 who withdraws  with 20 or more years of service, and any employee with 20 or more years of  service who withdraws on or after January 1, 1988, may elect to receive, in  lieu of any other employee  annuity provided in this Section, an annuity for life equal to 1.80% for  each of the first 10 years of service, 2.00% for each of the next 10 years  of service, 2.20% for each year of service in excess of 20, but not  exceeding 30, and 2.40% for each year of service in excess of 30,  of the highest average annual salary for any 4  consecutive years within the last 10 years of service immediately preceding  the date of withdrawal, to begin not earlier than upon attained age of 55  years, if under such age at withdrawal, reduced 0.25% for each full month  or fractional part thereof that his attained age when annuity is to begin  is less than 60; except that an employee retiring on or after January 1,  1988, at age 55 or over but less than age 60, having at least 35 years of  service, or an employee retiring on or after July 1, 1990, at age 55  or over but less than age 60, having at least 30 years of service,  or an employee retiring on or after the effective date of this amendatory Act  of 1997, at age 55 or over but less than age 60, having at least 25 years of  service, shall not be subject to the reduction in retirement annuity because  of retirement below age 60.However, in the case of an employee who retired on or after January 1,  1985 but before January 1, 1988, at age 55 or older and with at least 35  years of service, and who was subject under this subsection (a) to the  reduction in retirement annuity because of retirement below age 60, that  reduction shall cease to be effective January 1, 1991, and the retirement  annuity shall be recalculated accordingly.Any employee who withdraws on or after July 1, 1990, with 20 or more  years of service, may elect to receive, in lieu of any other employee  annuity provided in this Section, an annuity for life equal to 2.20% for  each year of service if withdrawal is before January 1, 2002, or  2.40% for each year of service if withdrawal is on or after January 1,  2002, of the highest average annual salary for any 4  consecutive years within the last 10 years of service immediately preceding  the date of withdrawal, to begin not earlier than upon attained age of 55  years, if under such age at withdrawal, reduced 0.25% for each full month  or fractional part thereof that his attained age when annuity is to begin  is less than 60; except that an employee retiring at age 55 or over but  less than age 60, having at least 30 years of service, shall not be subject  to the reduction in retirement annuity because of retirement below age 60.Any employee who withdraws on or after the effective date of this  amendatory Act of 1997 with 20 or more years of service may elect to receive,  in lieu of any other employee annuity provided in this Section, an annuity for  life equal to 2.20% for each year of service if withdrawal is before  January 1, 2002, or 2.40% for each year of service if withdrawal is  on or  after January 1, 2002, of the  highest average annual  salary for any 4 consecutive years within the last 10 years of service  immediately preceding the date of withdrawal, to begin not earlier than upon  attainment of age 55 (age 50 if the employee has at least 30 years of service),  reduced 0.25% for each full month or remaining fractional part thereof that the  employee's attained age when annuity is to begin is less than 60; except that  an employee retiring at age 50 or over with at least 30 years of service or at  age 55 or over with at least 25 years of service shall not be subject to the  reduction in retirement annuity because of retirement below age 60.The maximum annuity payable under this paragraph (a) of this Section  shall not exceed 70% of highest average annual salary in the case of an  employee who withdraws prior to July 1, 1971, 75% if withdrawal takes place on  or after July 1, 1971 and prior to January 1, 2002, or 80% if  withdrawal  is on or after January 1, 2002.  For the purpose of the  minimum annuity  provided in said paragraphs $1,500 shall be considered the minimum annual  salary for any year; and the maximum annual salary to be considered for the  computation of such annuity shall be $4,800 for any year prior to 1953,  $6,000 for the years 1953 to 1956, inclusive, and the actual annual salary,  as salary is defined in this Article, for any year thereafter.(b) For an employee receiving disability benefit, his salary for annuity  purposes under this Section shall, for all periods of disability benefit  subsequent to the year 1956, be the amount on which his disability benefit  was based.(c) An employee with 20 or more years of service, whose entire  disability benefit credit period expires prior to attainment of age 55  while still disabled for service, shall be entitled upon withdrawal to the  larger of (1) the minimum annuity provided above assuming that he is then  age 55, and reducing such annuity to its actuarial equivalent at his  attained age on such date, or (2) the annuity provided from his age and  service and prior service annuity credits.(d) The minimum annuity provisions as aforesaid shall not apply to any  former employee receiving an annuity from the fund, and who re-enters  service as an employee, unless he renders at least 3 years of additional  service after the date of re-entry.(e) An employee in service on July 1, 1947, or who became a contributor  after July 1, 1947 and prior to July 1, 1950, or who shall become a  contributor to the fund after July 1, 1950 prior to attainment of age 70,  who withdraws after age 65 with less than 20 years of service, for whom the  annuity has been fixed under the foregoing Sections of this Article shall,  in lieu of the annuity so fixed, receive an annuity as follows:Such amount as he could have received had the accumulated amounts for  annuity been improved with interest at the effective rate to the date of  his withdrawal, or to attainment of age 70, whichever is earlier, and had  the city contributed to such earlier date for age and service annuity the  amount that would have been contributed had he been under age 65, after the  date his annuity was fixed in accordance with this Article, and assuming  his annuity were computed from such accumulations as of his age on such  earlier date. The annuity so computed shall not exceed the annuity which  would be payable under the other provisions of this Section if the employee  was credited with 20 years of service and would qualify for annuity  thereunder.(f) In lieu of the annuity provided in this or in any other Section of  this Article, an employee having attained age 65 with at least 15 years of  service who withdraws from service on or after July 1, 1971 and whose  annuity computed under other provisions of this Article is less than the  amount provided under this paragraph shall be entitled to receive a minimum  annual annuity for life equal to 1% of the highest average annual salary  for any 4 consecutive years within the last 10 years of service immediately  preceding retirement for each year of his service plus the sum of $25 for  each year of service. Such annual annuity shall not exceed the maximum  percentages stated under paragraph (a) of this Section of such highest  average annual salary.(f-1) Instead of any other retirement annuity provided in this Article,  an employee who has at least 10 years of service and withdraws from service  on or after January 1, 1999 may elect to receive a retirement annuity for  life, beginning no earlier than upon attainment of age 60, equal to 2.2%  if withdrawal is before January 1, 2002, or 2.4% for each year of  service if  withdrawal is on or after January 1, 2002, of final  average salary for  each  year of service, subject to a maximum of 75% of final average salary  if withdrawal is before January 1, 2002, or 80% if withdrawal is on  or after  January 1, 2002.  For the purpose of calculating this  annuity, "final average  salary" means the highest average annual salary for any 4 consecutive years  in the last 10 years of service. Notwithstanding any provision of this subsection to the contrary, the "final average salary" for a participant that received credit under item (3) of subsection (c) of Section 11-215 means the highest average salary for any 4 consecutive years (or any 8 consecutive years if the employee first became a participant on or after January 1, 2011) in the 10 years immediately prior to the leave of absence, and adding to that highest average salary, the product of (i) that highest average salary, (ii) the average percentage increase in the Consumer Price Index during each 12-month calendar year for the calendar years during the participant's leave of absence, and (iii) the length of the leave of absence in years, provided that this shall not exceed the participant's salary at the local labor organization.  For purposes of this Section, the Consumer Price Index is the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor.(g) Any annuity payable under the preceding subsections of this Section  11-134 shall be paid in equal monthly installments.(h) The amendatory provisions of part (a) and (f) of this Section shall  be effective July 1, 1971 and apply in the case of every qualifying  employee withdrawing on or after July 1, 1971.(h-1) The changes made to this Section by Public Act 92-609 (increasing the retirement  formula to 2.4% per year of service and increasing the maximum to 80%) apply  to persons who withdraw from service on or after January 1, 2002, regardless  of whether that withdrawal takes place before the effective date of that Act.  In the case of a person who withdraws from service  on or after January 1, 2002 but begins to receive a retirement annuity before  July 1, 2002, the annuity  shall be recalculated, with the increase resulting from Public Act 92-609  accruing from the date the retirement annuity  began.  The changes made by Public Act 92-609 control over the changes made  by Public Act 92-599, as provided in Section 95 of P.A. 92-609.(i) The amendatory provisions of this amendatory Act of 1985 relating to  the discount of annuity because of retirement prior to attainment of age 60  and increasing the retirement formula for those born before January 1, 1936,  shall apply only to qualifying employees withdrawing on or after  August 16, 1985.(j) Beginning on January 1, 1999, the minimum amount of employee's annuity  shall be $850 per month for life for the following classes of employees,  without regard to the fact that withdrawal occurred prior to the effective  date of this amendatory Act of 1998:(1) any employee annuitant alive and receiving a life     annuity on the effective date of this amendatory Act of 1998, except a reciprocal annuity;(2) any employee annuitant alive and receiving a term     annuity on the effective date of this amendatory Act of 1998, except a reciprocal annuity;(3) any employee annuitant alive and receiving a     reciprocal annuity on the effective date of this amendatory Act of 1998, whose service in this fund is at least 5 years;(4) any employee annuitant withdrawing after age 60     on or after the effective date of this amendatory Act of 1998, with at least 10 years of service in this fund.The increases granted under items (1), (2) and (3) of this subsection (j)  shall not be limited by any other Section of this Act.  (Source: P.A. 97-651, eff. 1-5-12; 98-756, eff. 7-16-14.)