40 ILCS 5/2-119.1
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 2 - General Assembly Retirement System

 (from Ch. 108 1/2, par. 2-119.1)(Text of Section WITH the changes made by P.A. 98-599, which has been  held unconstitutional)Sec. 2-119.1. Automatic increase in retirement annuity.(a) Except as otherwise provided in this Section, a participant who retires after June 30, 1967, and who has not  received an initial increase under this Section before the effective date  of this amendatory Act of 1991, shall, in January or July next following  the first anniversary of retirement, whichever occurs first, and in the same  month of each year thereafter, but in no event prior to age 60, have the amount  of the originally granted retirement annuity increased as follows:  for each  year through 1971, 1 1/2%; for each year from 1972 through 1979, 2%; and for  1980 and each year thereafter, 3%.  Annuitants who have received an initial  increase under this subsection prior to the effective date of this amendatory  Act of 1991 shall continue to receive their annual increases in the same month  as the initial increase.(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), for a Tier 1  retiree, all automatic increases payable under subsection (a) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity  payable at the time of the increase, including previous  increases granted, or (2) $1,000 multiplied by the number of years of creditable service upon which the annuity is based.Beginning January 1, 2016, the $1,000 referred to in item (2) of this subsection (a-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.  For the purposes of this subsection (a-1), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year.This subsection (a-1) is applicable without regard to whether the person is in service on or after the effective date of  this amendatory Act of the 98th General Assembly.(a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 participant who has not begun to receive a retirement annuity under this Article before July 1, 2014:(1) the second automatic annual increase payable     under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 50 on the effective date of this amendatory Act;(2) the second, fourth,  and sixth automatic annual     increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 47 but less than age 50 on the effective date of this amendatory Act;(3) the second, fourth, sixth, and eighth automatic     annual increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 44 but less than age 47 on the effective date of this amendatory Act; and(4) the second, fourth, sixth, eighth, and tenth     automatic annual increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is less than age 44 on the effective date of this amendatory Act.For the purposes of Section 1-103.1, this subsection (a-2) is applicable without regard to whether the person is in service on or after the effective date of  this amendatory Act of the 98th General Assembly.(b) Beginning January 1, 1990, for eligible participants who remain  in service after attaining 20 years of creditable service, the increases  provided under subsection (a) shall begin to accrue on the January 1 next  following the date upon which the participant (1) attains age 55, or (2)  attains 20 years of creditable service, whichever occurs later, and shall  continue to accrue while the participant remains in service; such increases  shall become payable on January 1 or July 1, whichever occurs first, next  following the first anniversary of retirement.  For any person who has service  credit in the System for the entire period from January 15, 1969 through  December 31, 1992, regardless of the date of termination of service, the  reference to age 55 in clause (1) of this subsection (b) shall be deemed to  mean age 50. The increases accruing under this subsection (b) after the effective date of this amendatory Act of the 98th General Assembly shall accrue at the rate provided in subsection (a-1).This subsection (b) does not apply to any person who first becomes a  member of the System after the effective date of this amendatory Act of  the 93rd General Assembly.(b-5) Notwithstanding any other provision of this Section, a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) shall, in January or July next following the first anniversary of retirement, whichever occurs first, and in the same month of each year thereafter, but in no event prior to age 67, have the amount of the retirement annuity then being paid increased by an amount calculated as a percentage of the originally granted retirement annuity, equal to 3% or one-half of the annual unadjusted percentage increase (but not less than zero) in the Consumer Price Index for All Urban Consumers for the 12 months ending with the preceding September, as determined by the Public Pension Division of the Department of Insurance and reported to the System by November 1 of each year, whichever is less.The changes made to this subsection (b-5) by this amendatory Act  of the 98th General Assembly shall apply to increases provided under this subsection on or after the effective date of this amendatory Act without regard to whether service  terminated before that effective date.(c) The foregoing provisions relating to automatic increases are not  applicable to a participant who retires before having made contributions  (at the rate prescribed in Section 2-126) for automatic increases for less  than the equivalent of one full year.  However, in order to be eligible for  the automatic increases, such a participant may make arrangements to pay  to the system the amount required to bring the total contributions for the  automatic increase to the equivalent of one year's contributions based upon  his or her last salary.(d) A participant who terminated service prior to July 1, 1967, with at  least 14 years of service is entitled to an increase in retirement annuity  beginning January, 1976, and to additional increases in January of each  year thereafter.The initial increase shall be 1 1/2% of the originally granted retirement  annuity multiplied by the number of full years that the  annuitant was in  receipt of such annuity prior to January 1, 1972, plus 2% of the originally  granted retirement annuity for each year after that date.  The subsequent  annual increases shall be at the rate of 2% of the originally granted  retirement annuity for each year through 1979 and at the rate of 3% for  1980 and thereafter. The increases provided under this subsection (d) on or after the effective date of this amendatory Act of the 98th General Assembly shall be at the rate provided in subsection (a-1), notwithstanding that service  terminated before that effective date.(e) Except as may be provided in subsection (b-5), beginning January 1, 1990, all automatic annual increases payable  under this Section shall be calculated as a percentage of the total annuity  payable at the time of the increase, including previous increases granted  under this Article.  (Source: P.A. 98-599, eff. 6-1-14.)(Text of Section WITHOUT the changes made by P.A. 98-599, which has been  held unconstitutional)Sec. 2-119.1. Automatic increase in retirement annuity.(a) A participant who retires after June 30, 1967, and who has not  received an initial increase under this Section before the effective date  of this amendatory Act of 1991, shall, in January or July next following  the first anniversary of retirement, whichever occurs first, and in the same  month of each year thereafter, but in no event prior to age 60, have the amount  of the originally granted retirement annuity increased as follows:  for each  year through 1971, 1 1/2%; for each year from 1972 through 1979, 2%; and for  1980 and each year thereafter, 3%.  Annuitants who have received an initial  increase under this subsection prior to the effective date of this amendatory  Act of 1991 shall continue to receive their annual increases in the same month  as the initial increase.(b) Beginning January 1, 1990, for eligible participants who remain  in service after attaining 20 years of creditable service, the 3% increases  provided under subsection (a) shall begin to accrue on the January 1 next  following the date upon which the participant (1) attains age 55, or (2)  attains 20 years of creditable service, whichever occurs later, and shall  continue to accrue while the participant remains in service; such increases  shall become payable on January 1 or July 1, whichever occurs first, next  following the first anniversary of retirement.  For any person who has service  credit in the System for the entire period from January 15, 1969 through  December 31, 1992, regardless of the date of termination of service, the  reference to age 55 in clause (1) of this subsection (b) shall be deemed to  mean age 50.This subsection (b) does not apply to any person who first becomes a  member of the System after the effective date of this amendatory Act of  the 93rd General Assembly.(b-5) Notwithstanding any other provision of this Article, a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) shall, in January or July next following the first anniversary of retirement, whichever occurs first, and in the same month of each year thereafter, but in no event prior to age 67, have the amount of the retirement annuity then being paid increased by 3% or the annual unadjusted percentage increase in the Consumer Price Index for All Urban Consumers as determined by the Public Pension Division of the Department of Insurance under subsection (a) of Section 2-108.1, whichever is less.(c) The foregoing provisions relating to automatic increases are not  applicable to a participant who retires before having made contributions  (at the rate prescribed in Section 2-126) for automatic increases for less  than the equivalent of one full year.  However, in order to be eligible for  the automatic increases, such a participant may make arrangements to pay  to the system the amount required to bring the total contributions for the  automatic increase to the equivalent of one year's contributions based upon  his or her last salary.(d) A participant who terminated service prior to July 1, 1967, with at  least 14 years of service is entitled to an increase in retirement annuity  beginning January, 1976, and to additional increases in January of each  year thereafter.The initial increase shall be 1 1/2% of the originally granted retirement  annuity multiplied by the number of full years that the  annuitant was in  receipt of such annuity prior to January 1, 1972, plus 2% of the originally  granted retirement annuity for each year after that date.  The subsequent  annual increases shall be at the rate of 2% of the originally granted  retirement annuity for each year through 1979 and at the rate of 3% for  1980 and thereafter.(e) Beginning January 1, 1990, all automatic annual increases payable  under this Section shall be calculated as a percentage of the total annuity  payable at the time of the increase, including previous increases granted  under this Article.  (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)