40 ILCS 5/13-302
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 13 - Metropolitan Water Reclamation District Retirement Fund

 (from Ch. 108 1/2, par. 13-302)Sec. 13-302. Computation of retirement annuity.(a) Computation of annuity.  An employee who withdraws from service on  or after July 1, 1989 and who has met the age and service requirements and  other conditions for eligibility set forth in Section 13-301 of this  Article is entitled to receive a retirement annuity for life equal to 2.2%  of average final salary for each of the first 20 years of service, and 2.4%  of average final salary for each year of service in excess of 20.  The  retirement annuity shall not exceed 80% of average final salary.(b) Early retirement discount.  If an employee retires prior to  attainment of age 60 with less than 30 years of service, the annuity  computed above shall be reduced by 1/2 of 1% for each full month between  the date the annuity begins and attainment of age 60, or each full month by  which the employee's service is less than 30 years, whichever is less.  However, where the employee first enters service after June 13, 1997 and does not have at least 10  years of service exclusive of credit under Article 20, the annuity computed  above shall be reduced by 1/2 of 1% for each full month between the date the  annuity begins and attainment of age 60.(c) Rule of 80 - Early retirement without discount. For an employee  who  retires on or after January 1, 2003 but on or before December 31, 2007, if the  employee is eligible for a retirement annuity under Section 13-301 and has at  least  10 years of service exclusive of credit under Article 20 and if at the date of  withdrawal the employee's age when added to the number of years of his or her  creditable  service equals at least 80, the early retirement discount in subsection (b) of  this  Section does not apply. For purposes of this Rule of 80, portions of years  shall be  considered in whole months.An employee who has terminated employment with the employer under this  Article prior to the effective date of this amendatory Act of the 92nd General  Assembly and subsequently re-enters service must remain in service with the  employer under this Article for at least 2 years after re-entry during the  period  beginning on January 1, 2003 and ending on December 31, 2007 to be entitled to  early retirement without discount under this subsection (c).In the case of an employee who retires under the terms of Article 20,  eligibility  for early retirement without discount under this subsection (c) shall be based  upon  the employee's age and service credit at the time of withdrawal from the final  fund.(c-1) Early retirement without discount; retirement after June 29,  1997 and before January 1, 2003.  An employee  who (i) has attained age 55 (age 50 if the employee  first entered service before June 13, 1997), (ii) has at least 10 years of  service exclusive  of credit under Article 20, (iii) retires after June 29, 1997 and before  January 1, 2003, and (iv) retires within 6 months of the last day for which  retirement contributions were required, may elect at the time of application to  make a one-time employee  contribution to the Fund and thereby avoid the early retirement reduction  specified in subsection (b).  The exercise of the election shall also obligate  the employer to make a one-time nonrefundable contribution to the Fund.The one-time employee and employer contributions shall be a percentage  of the retiring employee's highest full-time annual salary, calculated as the  total amount of salary included in the highest 26 consecutive pay periods as  used in the average final salary calculation, and based on the employee's age  and service at retirement.  The employee rate shall be 7% multiplied by the  lesser of the following 2 numbers: (1) the number of years, or portion thereof,  that the employee is less than age 60; or (2) the number of years, or portion  thereof, that the employee's service is less than 30 years.  The employer  contribution shall be at the rate of 20% for each year, or portion thereof,  that the participant is less than age 60.Upon receipt of the application, the Board shall determine the corresponding  employee and employer contributions.  The annuity shall not be payable  under this subsection until both the required contributions have been received  by the Fund.  However, the date the contributions are received shall  not be considered in determining the effective date of retirement.The number of employees who may retire under this Section in any year may  be limited at the option of the District to a specified percentage of those  eligible, not lower than 30%, with the right to participate to be allocated  among those applying on the basis of seniority in the service of the employer.An employee who has terminated employment and subsequently re-enters  service shall not be entitled to early retirement without discount under  this subsection unless the employee continues in service for at least 4  years after re-entry.(d) Annual increase.  Except for employees retiring and receiving a term  annuity, an employee who retires on or after July 1, 1985 but before July 12,  2001, shall,  upon the first payment date following the first anniversary of the date of  retirement, have the monthly annuity increased by 3% of the amount of the  monthly annuity fixed at the date of retirement.  Except for employees retiring and receiving a term annuity, an employee who  retires on or after July 12, 2001 shall, on the first day of the month in which the first  anniversary of the date of retirement occurs, have the monthly annuity  increased by 3% of the amount of the monthly annuity fixed at the date of  retirement.  The monthly annuity shall be increased by an additional 3% on the same date  each year thereafter.  Beginning January 1, 1993, all annual increases payable  under this subsection (or any predecessor provision, regardless of the date  of retirement) shall be calculated at the rate of 3% of the monthly annuity  payable at the time of the increase, including any increases previously granted  under this Article.Any employee who (i) retired before July 1, 1985 with at least 10 years of  creditable service, (ii) is receiving a retirement annuity under this Article,  other than a term annuity, and (iii) has not received any annual increase under  this subsection, shall begin receiving the annual increases provided under this  subsection (d) beginning on the next annuity payment date following June  13, 1997.(e) Minimum retirement annuity.  Beginning January 1, 1993, the  minimum monthly retirement annuity shall be $500 for any annuitant having  at least 10 years of service under this Article, other than a term  annuitant or an annuitant who began receiving the annuity before attaining  age 60.  Any such annuitant who is receiving a monthly annuity of less than  $500 shall have the annuity increased to $500 on that date.Beginning January 1, 1993, the minimum monthly retirement annuity shall  be $250 for any annuitant (other than a term or reciprocal annuitant or an  annuitant under subsection (d) of Section 13-301) having less than 10 years  of service under this Article, and for any annuitant (other than a term  annuitant) having at least 10 years of service under this Article who began  receiving the annuity before attaining age 60.  Any such annuitant who is  receiving a monthly annuity of less than $250 shall have the annuity  increased to $250 on that date.Beginning August 1, 2001  (and without regard to whether the annuitant was in service on or after that  effective date), the  minimum monthly retirement annuity for any annuitant having at least 10 years  of service, other than an annuitant whose annuity is subject to an early  retirement discount, shall be $500 plus $25 for each year of service in excess  of 10, not to exceed $750 for an annuitant with 20 or more years of service.  In the case of a reciprocal annuity, this minimum shall apply only if the  annuitant has at least 10 years of service under this Article, and the amount  of the minimum annuity shall be reduced by the sum of all the reciprocal  annuities payable to the annuitant by other participating systems under Article  20 of this Code.Notwithstanding any other provision of this subsection, beginning on the  first annuity payment date following July 12, 2001, an employee who retired  before August 23, 1989  with at least 10 years of service under this Article but before attaining age  60 (regardless of whether the retirement annuity was subject to an early  retirement discount) shall be entitled to the same minimum monthly retirement  annuity under this subsection as an employee who retired with at least 10  years of service under this Article and after attaining age 60.Notwithstanding any other provision of this subsection, beginning on the  first day of the month following the month in which this amendatory Act of the  94th General Assembly takes effect (and without regard to whether the annuitant  was in service on or after that effective date), an employee who retired on or  after August 23, 1989 with at least 10 years of service under this Article but  before attaining age 60 (regardless of whether the retirement annuity was  subject to an early retirement discount), except for an employee who is eligible for an annuity under Section 13-301(d), shall be entitled to the same minimum  monthly retirement annuity under this subsection as an employee who retired  with at least 10 years of service under this Article and after attaining age  60.              (Source: P.A. 94-621, eff. 8-18-05.)