40 ILCS 5/15-136
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 15 - State Universities Retirement System

 (from Ch. 108 1/2, par. 15-136)Sec. 15-136. Retirement annuities - Amount. The provisions of this  Section 15-136 apply only to those participants who are participating in the  traditional benefit package or the portable benefit package and do not  apply to participants who are participating in the self-managed plan.(a) The amount of a participant's retirement annuity, expressed in the form  of a single-life annuity, shall be determined by whichever of the following  rules is applicable and provides the largest annuity:Rule 1: The retirement annuity shall be 1.67% of final rate of earnings 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 in excess of 30; or for persons who retire on or  after January 1, 1998, 2.2% of the final rate of earnings for each year of  service.Rule 2: The retirement annuity shall be the sum of the following,  determined from amounts credited to the participant in accordance with the  actuarial tables and the effective rate of interest in effect at the  time the retirement annuity begins:(i) the normal annuity which can be provided on an     actuarially equivalent basis, by the accumulated normal contributions as of the date the annuity begins;(ii) an annuity from employer contributions of an     amount equal to that which can be provided on an actuarially equivalent basis from the accumulated normal contributions made by the participant under Section 15-113.6 and Section 15-113.7 plus 1.4 times all other accumulated normal contributions made by the participant; and(iii) the annuity that can be provided on an     actuarially equivalent basis from the entire contribution made by the participant under Section 15-113.3.With respect to a police officer or firefighter who retires on or after  August 14, 1998, the accumulated normal contributions taken into account under  clauses (i) and (ii) of this Rule 2 shall include the additional normal  contributions made by the police officer or firefighter under Section  15-157(a).The amount of a retirement annuity calculated under this Rule 2 shall  be computed solely on the basis of the participant's accumulated normal  contributions, as specified in this Rule and defined in Section 15-116.  Neither an employee or employer contribution for early retirement under  Section 15-136.2 nor any other employer contribution shall be used in the  calculation of the amount of a retirement annuity under this Rule 2.This amendatory Act of the 91st General Assembly is a clarification of  existing law and applies to every participant and annuitant without regard to  whether status as an employee terminates before the effective date of this  amendatory Act.This Rule 2 does not apply to a person who first becomes an employee under this Article on or after July 1, 2005.Rule 3: The retirement annuity of a participant who is employed  at least one-half time during the period on which his or her final rate of  earnings is based, shall be equal to the participant's years of service  not to exceed 30, multiplied by (1) $96 if the participant's final rate  of earnings is less than $3,500, (2) $108 if the final rate of earnings is  at least $3,500 but less than $4,500, (3) $120 if the final rate of earnings  is at least $4,500 but less than $5,500, (4) $132 if the final rate  of earnings is at least $5,500 but less than $6,500, (5)  $144 if the final rate of earnings is at least $6,500 but less than  $7,500, (6) $156 if the final rate of earnings is at least $7,500 but less  than $8,500, (7) $168 if the final rate of earnings is at least $8,500 but  less than $9,500, and (8) $180 if the final rate of earnings is $9,500 or  more, except that the annuity for those persons having made an election under  Section 15-154(a-1) shall be calculated and payable under the portable  retirement benefit program pursuant to the provisions of Section 15-136.4.Rule 4: A participant who is at least age 50 and has 25 or more years of  service as a police officer or firefighter, and a participant who is age 55 or  over and has at least 20 but less than 25 years of service as a police officer  or firefighter, shall be entitled to a retirement annuity of 2 1/4% of the  final rate of earnings for each of the first 10 years of service as a police  officer or firefighter, 2 1/2% for each of the next 10 years of service as a  police officer or firefighter, and 2 3/4% for each year of service as a police  officer or firefighter in excess of 20.  The retirement annuity for all other  service shall be computed under Rule 1. A Tier 2 member is eligible for a retirement annuity calculated under Rule 4 only if that Tier 2 member meets the service requirements for that benefit calculation as prescribed under this Rule 4 in addition to the applicable age requirement under subsection (a-10) of Section 15-135.For purposes of this Rule 4, a participant's service as a firefighter  shall also include the following:(i) service that is performed while the person is an     employee under subsection (h) of Section 15-107; and(ii) in the case of an individual who was a     participating employee employed in the fire department of the University of Illinois's Champaign-Urbana campus immediately prior to the elimination of that fire department and who immediately after the elimination of that fire department transferred to another job with the University of Illinois, service performed as an employee of the University of Illinois in a position other than police officer or firefighter, from the date of that transfer until the employee's next termination of service with the University of Illinois.(b) For a Tier 1 member, the retirement annuity provided under Rules 1 and 3 above shall be  reduced by 1/2 of 1% for each month the participant is under age 60 at the  time of retirement.  However, this reduction shall not apply in the following  cases:(1) For a disabled participant whose disability     benefits have been discontinued because he or she has exhausted eligibility for disability benefits under clause (6) of Section 15-152;(2) For a participant who has at least the number of     years of service required to retire at any age under subsection (a) of Section 15-135; or(3) For that portion of a retirement annuity which     has been provided on account of service of the participant during periods when he or she performed the duties of a police officer or firefighter, if these duties were performed for at least 5 years immediately preceding the date the retirement annuity is to begin.(b-5)  The retirement annuity of a Tier 2 member who is retiring under Rule 1 or 3 after attaining age 62 with at least 10 years of service credit shall be reduced by 1/2 of 1% for each full month that the member's age is under age 67.(c) The maximum retirement annuity provided under Rules 1, 2, 4,  and 5  shall be the lesser of (1) the annual limit of benefits as specified in  Section 415 of the Internal Revenue Code of 1986, as such Section may be  amended from time to time and as such benefit limits shall be adjusted by  the Commissioner of Internal Revenue, and (2) 80% of final rate of  earnings.(d) A Tier 1 member whose status as an employee terminates after August 14,  1969 shall receive automatic increases in his or her retirement annuity as  follows:Effective January 1 immediately following the date the retirement annuity  begins, the annuitant shall receive an increase in his or her monthly  retirement annuity of 0.125% of the monthly retirement annuity provided under  Rule 1, Rule 2, Rule 3, or Rule 4 contained in this  Section, multiplied by  the number of full months which elapsed from the date the retirement annuity  payments began to January 1, 1972, plus 0.1667% of such annuity, multiplied by  the number of full months which elapsed from January 1, 1972, or the date the  retirement annuity payments began, whichever is later, to January 1, 1978, plus  0.25% of such annuity multiplied by the number of full months which elapsed  from January 1, 1978, or the date the retirement annuity payments began,  whichever is later, to the effective date of the increase.The annuitant shall receive an increase in his or her monthly retirement  annuity on each January 1 thereafter during the annuitant's life of 3% of  the monthly annuity provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained  in this Section.  The change made under this subsection by P.A. 81-970 is  effective January 1, 1980 and applies to each annuitant whose status as  an employee terminates before or after that date.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 all increases previously  granted under this Article.The change made in this subsection by P.A. 85-1008 is effective January  26, 1988, and is applicable without regard to whether status as an employee  terminated before that date.(d-5)  A retirement annuity of a Tier 2 member shall receive annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 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, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased.(e) If, on January 1, 1987, or the date the retirement annuity payment  period begins, whichever is later, the sum of the retirement annuity  provided under Rule 1 or Rule 2 of this Section  and the automatic annual increases provided under the preceding subsection  or Section 15-136.1, amounts to less than the retirement  annuity which would be provided by Rule 3, the retirement  annuity shall be increased as of January 1, 1987, or the date the  retirement annuity payment period begins, whichever is later, to the amount  which would be provided by Rule 3 of this Section. Such increased  amount shall be considered as the retirement annuity in determining  benefits provided under other Sections of this Article. This paragraph  applies without regard to whether status as an employee terminated before the  effective date of this amendatory Act of 1987, provided that the annuitant was  employed at least one-half time during the period on which the final rate of  earnings was based.(f) A participant is entitled to such additional annuity as may be provided  on an actuarially equivalent basis, by any accumulated  additional contributions to his or her credit.  However,  the additional contributions made by the participant toward the automatic  increases in annuity provided under this Section shall not be taken into  account in determining the amount of such additional annuity.(g) If, (1) by law, a function of a governmental unit, as defined by Section  20-107 of this Code, is transferred in whole or in part to an employer, and (2)  a participant transfers employment from such governmental unit to such employer  within 6 months after the transfer of the function, and (3) the sum of (A) the  annuity payable to the participant under Rule 1, 2, or 3 of this Section (B)  all proportional annuities payable to the participant by all other retirement  systems covered by Article 20, and (C) the initial primary insurance amount to  which the participant is entitled under the Social Security Act, is less than  the retirement annuity which would have been payable if all of the  participant's pension credits validated under Section 20-109 had been validated  under this system, a supplemental annuity equal to the difference in such  amounts shall be payable to the participant.(h) On January 1, 1981, an annuitant who was receiving  a retirement annuity on or before January 1, 1971 shall have his or her  retirement annuity then being paid increased $1 per month for  each year of creditable service. On January 1, 1982, an annuitant whose  retirement annuity began on or before January 1, 1977, shall have his or her  retirement annuity then being paid increased $1 per month for each year of  creditable service.(i) On January 1, 1987, any annuitant whose retirement annuity began on or  before January 1, 1977, shall have the monthly retirement annuity increased by  an amount equal to 8¢ per year of creditable service times the number of years  that have elapsed since the annuity began.(j) The changes made to this Section by this amendatory Act of the 101st General Assembly apply retroactively to January 1, 2011.(Source: P.A. 101-610, eff. 1-1-20.)