40 ILCS 5/8-137
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 8 - Municipal Employees', Officers', And Officials' Annuity And Benefit Fund--Cities Over 500,000 Inhabitants

   (from Ch. 108 1/2, par. 8-137)(Text of Section WITH the changes made by P.A. 98-641, which has been held unconstitutional)Sec. 8-137. Automatic increase in annuity.(a) An employee who retired or retires from service after December 31,  1959 and before January 1, 1987, having attained age 60 or more, shall,  in January of the year  after the year in which the first anniversary of retirement occurs, have  the amount of his then fixed and payable monthly annuity increased by 1  1/2%, and such first fixed annuity as granted at retirement increased by  a further 1 1/2% in January of each year thereafter.  Beginning with  January of the year 1972, such increases shall be at the rate of 2% in  lieu of the aforesaid specified 1 1/2%, and beginning with January of the  year 1984 such increases shall be at the rate of 3%.  Beginning in January of 1999, such increases  shall be at the rate of 3% of the currently payable monthly annuity,  including any increases previously granted under this Article.  An  employee who retires on annuity after December 31, 1959 and before  January 1, 1987, but before age 60, shall receive such  increases beginning in January of the year after the year  in which he attains age 60.An employee who retires from service on or after January 1, 1987 shall, upon  the first annuity payment date following the first anniversary of the date of  retirement, or upon the first annuity payment date following attainment of age  60, whichever occurs later, have his then fixed and payable monthly annuity  increased by 3%, and such annuity shall be increased by an additional 3% of the  original fixed annuity on the same date each year thereafter.  Beginning in  January of 1999, such increases shall be at the rate of 3% of the currently  payable monthly annuity, including any increases previously granted under this  Article.(a-5) Notwithstanding the provisions of subsection (a), upon the first  annuity payment date following (1) the third anniversary of retirement, (2)  the attainment of age 53, or (3) January 1, 2002, whichever  occurs latest,  the  monthly annuity of an employee who retires on annuity prior to the attainment  of age 60 and has not received an increase under subsection (a) shall  be  increased by 3%, and the annuity shall be increased by an additional  3% of the  current payable monthly annuity, including any  increases previously  granted  under this Article, on the same date each year thereafter.  The increases  provided under this subsection are in lieu of the increases provided in  subsection (a).(a-6) Notwithstanding the provisions of subsections (a) and (a-5), for all  calendar years following the year in which this amendatory Act of the 93rd  General Assembly takes effect, an increase in annuity under this Section that  would otherwise take effect at any time during the year shall instead take  effect in January of that year.(b) Subsections (a), (a-5), and (a-6) are not  applicable to an employee retiring  and receiving a term annuity, as herein defined, nor to any otherwise  qualified employee who retires before he makes employee contributions (at  the 1/2 of 1% rate as provided in this Act) for this additional  annuity for not less than the equivalent of one full year.  Such  employee, however, shall make arrangement to pay to the fund a balance  of such 1/2 of 1% contributions, based on his final salary, as will  bring such 1/2 of 1% contributions, computed without interest, to the  equivalent of or completion of one year's contributions.Beginning with January, 1960, each employee shall contribute by means of  salary deductions 1/2 of 1% of each salary payment, concurrently with  and in addition to the employee contributions otherwise made for annuity  purposes.Each such additional contribution shall be credited to an account in  the prior service annuity reserve, to be used, together with city  contributions, to defray the cost of the specified annuity increments.  Any balance in such account at the beginning of each calendar year shall  be credited with interest at the rate of 3% per annum.Such additional employee contributions are not refundable, except to  an employee who withdraws and applies for refund under this Article, and  in cases where a term annuity becomes payable. In such cases his  contributions shall be refunded, without interest, and charged to such  account in the prior service annuity reserve.(b-5) Notwithstanding any provision of this Section to the contrary:(1) A person retiring after the effective date of     this amendatory Act of the 98th General Assembly shall not be eligible for an annual increase under this Section until one full year after the date on which such annual increase otherwise would take effect under this Section.(2) Except for persons eligible under subdivision (4)     of this subsection for a minimum annual increase, there shall be no annual increase under this Section in years 2017, 2019, and 2025.(3)  In all other years, beginning January 1, 2015,     the Fund shall pay an annual increase to persons eligible to receive one under this Section, in lieu of any other annual increase provided under this Section (but subject to the minimum increase under subdivision (4) of this subsection, if applicable) in an amount equal to the lesser of 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1 of the person's last annual annuity amount prior to January 1, 2015, or if the person was not yet receiving an annuity on that date, then this calculation shall be based on his or her originally granted annual annuity amount.For the purposes of this Section, "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.(4) A person is eligible under this subdivision (4)     to receive a minimum annual increase in a particular year if: (i) the person is otherwise eligible to receive an annual increase under subdivision (3) of this subsection, and (ii) the annual amount of the annuity payable at the time of the increase, including all increases previously received, is less than $22,000.Beginning January 1, 2015, for a person who is     eligible under this subdivision (4) to receive a minimum annual increase in the year 2017, 2019, or 2025, the annual increase shall be 1% of the person's last annual annuity amount prior to January 1, 2015, or if the person was not yet receiving an annuity on that date, then 1% of his or her originally granted annual annuity amount.Beginning January 1, 2015, for any other year in     which a person is eligible under this subdivision (4) to receive a minimum annual increase, the annual increase shall be as specified under subdivision (3), but not less than 1% of the person's last annual annuity amount prior to January 1, 2015 or, if the person was not yet receiving an annuity on that date, then not less than 1% of his or her originally granted annual annuity amount.For the purposes of  Section 1-103.1, this subsection (b-5) is applicable without regard to whether the employee was in active service on or after the effective date of this amendatory Act of the 98th General Assembly. This subsection (b-5) applies to any former employee who on or after the effective date of this amendatory Act of the 98th General Assembly is receiving a retirement annuity and is  eligible for an automatic annual increase under this Section. (Source: P.A. 98-641, eff. 6-9-14.)(Text of Section WITHOUT the changes made by P.A. 98-641, which has been held unconstitutional)Sec. 8-137. Automatic increase in annuity.(a) An employee who retired or retires from service after December 31,  1959 and before January 1, 1987, having attained age 60 or more, shall,  in January of the year  after the year in which the first anniversary of retirement occurs, have  the amount of his then fixed and payable monthly annuity increased by 1  1/2%, and such first fixed annuity as granted at retirement increased by  a further 1 1/2% in January of each year thereafter.  Beginning with  January of the year 1972, such increases shall be at the rate of 2% in  lieu of the aforesaid specified 1 1/2%, and beginning with January of the  year 1984 such increases shall be at the rate of 3%.  Beginning in January of 1999, such increases  shall be at the rate of 3% of the currently payable monthly annuity,  including any increases previously granted under this Article.  An  employee who retires on annuity after December 31, 1959 and before  January 1, 1987, but before age 60, shall receive such  increases beginning in January of the year after the year  in which he attains age 60.An employee who retires from service on or after January 1, 1987 shall, upon  the first annuity payment date following the first anniversary of the date of  retirement, or upon the first annuity payment date following attainment of age  60, whichever occurs later, have his then fixed and payable monthly annuity  increased by 3%, and such annuity shall be increased by an additional 3% of the  original fixed annuity on the same date each year thereafter.  Beginning in  January of 1999, such increases shall be at the rate of 3% of the currently  payable monthly annuity, including any increases previously granted under this  Article.(a-5) Notwithstanding the provisions of subsection (a), upon the first  annuity payment date following (1) the third anniversary of retirement, (2)  the attainment of age 53, or (3) January 1, 2002, whichever  occurs latest,  the  monthly annuity of an employee who retires on annuity prior to the attainment  of age 60 and has not received an increase under subsection (a) shall  be  increased by 3%, and the annuity shall be increased by an additional  3% of the  current payable monthly annuity, including any         increases previously  granted  under this Article, on the same date each year thereafter.  The increases  provided under this subsection are in lieu of the increases provided in  subsection (a).(a-6) Notwithstanding the provisions of subsections (a) and (a-5), for all  calendar years following the year in which this amendatory Act of the 93rd  General Assembly takes effect, an increase in annuity under this Section that  would otherwise take effect at any time during the year shall instead take  effect in January of that year.(b) Subsections (a), (a-5), and (a-6) are not  applicable to an employee retiring  and receiving a term annuity, as herein defined, nor to any otherwise  qualified employee who retires before he makes employee contributions (at  the 1/2 of 1% rate as provided in this Act) for this additional  annuity for not less than the equivalent of one full year.  Such  employee, however, shall make arrangement to pay to the fund a balance  of such 1/2 of 1% contributions, based on his final salary, as will  bring such 1/2 of 1% contributions, computed without interest, to the  equivalent of or completion of one year's contributions.Beginning with January, 1960, each employee shall contribute by means of  salary deductions 1/2 of 1% of each salary payment, concurrently with  and in addition to the employee contributions otherwise made for annuity  purposes.Each such additional contribution shall be credited to an account in  the prior service annuity reserve, to be used, together with city  contributions, to defray the cost of the specified annuity increments.  Any balance in such account at the beginning of each calendar year shall  be credited with interest at the rate of 3% per annum.Such additional employee contributions are not refundable, except to  an employee who withdraws and applies for refund under this Article, and  in cases where a term annuity becomes payable. In such cases his  contributions shall be refunded, without interest, and charged to such  account in the prior service annuity reserve.       (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff.  7-1-02; 93-654, eff. 1-16-04.)