40 ILCS 5/14-108
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 14 - State Employees' Retirement System Of Illinois

 (from Ch. 108 1/2, par. 14-108)(Text of Section WITH the changes made by P.A. 98-599, which has been  held unconstitutional)Sec. 14-108. Amount of retirement annuity. A member who has contributed to the System for at least 12 months shall  be entitled to a prior service annuity for each year of certified prior  service credited to him, except that a member shall receive 1/3 of the prior  service annuity for each year of service for which contributions have been  made and all of such annuity shall be payable after the member has made  contributions for a period of 3 years.  Proportionate amounts shall be payable  for service of less than a full year after completion of at least 12 months.The total period of service to be considered in establishing the measure  of prior service annuity shall include service credited in the Teachers'  Retirement System of the State of Illinois and the State Universities  Retirement System for which contributions have been made by the member to  such systems; provided that at least 1 year of the total period of 3 years  prescribed for the allowance of a full measure of prior service annuity  shall consist of membership service in this system for which credit has been  granted.(a) In the case of a member who retires on or after January 1, 1998 and  is a noncovered employee, the retirement annuity for membership service and  prior service shall be 2.2% of final average compensation for each year of  service.  Any service credit established as a covered employee shall be  computed as stated in  paragraph (b).(b) In the case of a member who retires on or after January 1, 1998  and is a covered employee, the retirement annuity for membership  service and prior service shall be computed as stated in paragraph (a) for  all service credit established as a noncovered employee; for service credit  established as a covered employee it shall be 1.67% of final average  compensation for each year of service.(c) For a member  retiring after attaining age 55 but before age 60 with at least 30 but less  than 35 years of creditable service if retirement is before January 1, 2001, or  with at least 25 but less than 30 years of creditable service if retirement is  on or after January 1, 2001, the retirement annuity shall be reduced by 1/2  of 1% for each month that the member's age is under age 60 at the time of  retirement. For members to whom subsection (c) of Section 14-107 applies, the references to age 55 and 60 in this subsection (c) are increased as provided in subsection (c) of Section 14-107.(d) A retirement annuity shall not exceed 75% of final average compensation,  subject to such extension as may result from the application of Section 14-114  or Section 14-115.(e) The retirement annuity payable to any covered employee who is a member  of the System and in service on January 1, 1969, or in service thereafter  in 1969 as a result of legislation enacted by the Illinois General Assembly  transferring the member to State employment from county employment in a  county Department of Public Aid in counties of 3,000,000 or more population,  under a plan of coordination with the Old Age, Survivors and Disability  provisions thereof, if not fully insured for Old Age Insurance payments  under the Federal Old Age, Survivors and Disability Insurance provisions  at the date of acceptance of a retirement annuity, shall not be less than  the amount for which the member would have been eligible if coordination  were not applicable.(f) The retirement annuity payable to any covered employee who is a member  of the System and in service on January 1, 1969, or in service thereafter  in 1969 as a result of the legislation designated in the immediately preceding  paragraph, if fully insured for Old Age Insurance payments under the Federal  Social Security Act at the date of acceptance of a retirement annuity, shall  not be less than an amount which when added to the Primary Insurance Benefit  payable to the member upon attainment of age 65 under such Federal Act,  will equal the annuity which would otherwise be payable if the coordinated  plan of coverage were not applicable.(g) In the case of a member who is a noncovered employee, the retirement  annuity for membership service as a security employee of the Department of  Corrections or security employee of the Department of Human Services shall  be:  if retirement occurs on or after January 1, 2001, 3% of final average  compensation for each year of creditable service; or if retirement occurs  before January 1, 2001, 1.9% of final average compensation for each of the  first 10 years of service, 2.1% for each of the next 10 years of  service, 2.25% for each year of service in excess of 20 but not  exceeding 30, and 2.5% for each year in excess of 30; except that the  annuity may be calculated under subsection (a) rather than this subsection (g)  if the resulting annuity is greater.(h) In the case of a member who is a covered employee, the retirement  annuity for membership service as a security employee of the Department of  Corrections or security employee of the Department of Human Services shall  be:  if retirement occurs on or after January 1, 2001, 2.5% of final average  compensation for each year of creditable service; if retirement occurs before  January 1, 2001, 1.67% of final average compensation 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.(i) For the purposes of this Section and Section 14-133 of this Act,  the term "security employee of the Department of Corrections" and the term  "security employee of the Department of Human Services" shall have the  meanings ascribed to them in subsection (c) of Section 14-110.(j) The retirement annuity computed pursuant to paragraphs (g) or (h)  shall be applicable only to those security employees of the Department of  Corrections and security employees of the Department of Human Services who  have at least 20 years of membership service and who are not eligible for  the alternative retirement annuity provided under Section 14-110.  However,  persons transferring to this System under Section 14-108.2 or 14-108.2c  who have service credit under Article 16 of this Code may count such service  toward establishing their eligibility under the 20-year service requirement of  this subsection; but such service may be used only for establishing such  eligibility, and not for the purpose of increasing or calculating any benefit.(k) (Blank).(l) The changes to this Section made by this amendatory Act of 1997  (changing certain retirement annuity formulas from a stepped rate to a flat  rate) apply to members who retire on or after January 1, 1998, without regard  to whether employment terminated before the effective date of this amendatory  Act of 1997.  An annuity shall not be calculated in steps by using the new flat  rate for some steps and the superseded stepped rate for other steps of the same  type of service.  (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. 14-108.     Amount of retirement annuity.     A member who has contributed to the System for at least 12 months shall  be entitled to a prior service annuity for each year of certified prior  service credited to him, except that a member shall receive 1/3 of the prior  service annuity for each year of service for which contributions have been  made and all of such annuity shall be payable after the member has made  contributions for a period of 3 years.  Proportionate amounts shall be payable  for service of less than a full year after completion of at least 12 months.The total period of service to be considered in establishing the measure  of prior service annuity shall include service credited in the Teachers'  Retirement System of the State of Illinois and the State Universities  Retirement System for which contributions have been made by the member to  such systems; provided that at least 1 year of the total period of 3 years  prescribed for the allowance of a full measure of prior service annuity  shall consist of membership service in this system for which credit has been  granted.(a) In the case of a member who retires on or after January 1, 1998 and  is a noncovered employee, the retirement annuity for membership service and  prior service shall be 2.2% of final average compensation for each year of  service.  Any service credit established as a covered employee shall be  computed as stated in  paragraph (b).(b) In the case of a member who retires on or after January 1, 1998  and is a covered employee, the retirement annuity for membership  service and prior service shall be computed as stated in paragraph (a) for  all service credit established as a noncovered employee; for service credit  established as a covered employee it shall be 1.67% of final average  compensation for each year of service.(c) For a member  retiring after attaining age 55 but before age 60 with at least 30 but less  than 35 years of creditable service if retirement is before January 1, 2001, or  with at least 25 but less than 30 years of creditable service if retirement is  on or after January 1, 2001, the retirement annuity shall be reduced by 1/2  of 1% for each month that the member's age is under age 60 at the time of  retirement.(d) A retirement annuity shall not exceed 75% of final average compensation,  subject to such extension as may result from the application of Section 14-114  or Section 14-115.(e) The retirement annuity payable to any covered employee who is a member  of the System and in service on January 1, 1969, or in service thereafter  in 1969 as a result of legislation enacted by the Illinois General Assembly  transferring the member to State employment from county employment in a  county Department of Public Aid in counties of 3,000,000 or more population,  under a plan of coordination with the Old Age, Survivors and Disability  provisions thereof, if not fully insured for Old Age Insurance payments  under the Federal Old Age, Survivors and Disability Insurance provisions  at the date of acceptance of a retirement annuity, shall not be less than  the amount for which the member would have been eligible if coordination  were not applicable.(f) The retirement annuity payable to any covered employee who is a member  of the System and in service on January 1, 1969, or in service thereafter  in 1969 as a result of the legislation designated in the immediately preceding  paragraph, if fully insured for Old Age Insurance payments under the Federal  Social Security Act at the date of acceptance of a retirement annuity, shall  not be less than an amount which when added to the Primary Insurance Benefit  payable to the member upon attainment of age 65 under such Federal Act,  will equal the annuity which would otherwise be payable if the coordinated  plan of coverage were not applicable.(g) In the case of a member who is a noncovered employee, the retirement  annuity for membership service as a security employee of the Department of  Corrections or security employee of the Department of Human Services shall  be:  if retirement occurs on or after January 1, 2001, 3% of final average  compensation for each year of creditable service; or if retirement occurs  before January 1, 2001, 1.9% of final average compensation for each of the  first 10 years of service, 2.1% for each of the next 10 years of  service, 2.25% for each year of service in excess of 20 but not  exceeding 30, and 2.5% for each year in excess of 30; except that the  annuity may be calculated under subsection (a) rather than this subsection (g)  if the resulting annuity is greater.(h) In the case of a member who is a covered employee, the retirement  annuity for membership service as a security employee of the Department of  Corrections or security employee of the Department of Human Services shall  be:  if retirement occurs on or after January 1, 2001, 2.5% of final average  compensation for each year of creditable service; if retirement occurs before  January 1, 2001, 1.67% of final average compensation 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.(i) For the purposes of this Section and Section 14-133 of this Act,  the term "security employee of the Department of Corrections" and the term  "security employee of the Department of Human Services" shall have the  meanings ascribed to them in subsection (c) of Section 14-110.(j) The retirement annuity computed pursuant to paragraphs (g) or (h)  shall be applicable only to those security employees of the Department of  Corrections and security employees of the Department of Human Services who  have at least 20 years of membership service and who are not eligible for  the alternative retirement annuity provided under Section 14-110.  However,  persons transferring to this System under Section 14-108.2 or 14-108.2c  who have service credit under Article 16 of this Code may count such service  toward establishing their eligibility under the 20-year service requirement of  this subsection; but such service may be used only for establishing such  eligibility, and not for the purpose of increasing or calculating any benefit.(k) (Blank).(l) The changes to this Section made by this amendatory Act of 1997  (changing certain retirement annuity formulas from a stepped rate to a flat  rate) apply to members who retire on or after January 1, 1998, without regard  to whether employment terminated before the effective date of this amendatory  Act of 1997.  An annuity shall not be calculated in steps by using the new flat  rate for some steps and the superseded stepped rate for other steps of the same  type of service.    (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)