40 ILCS 5/16-136.1
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 16 - Teachers' Retirement System Of The State Of Illinois

 (from Ch. 108 1/2, par. 16-136.1)(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)Sec. 16-136.1. Annual increase for certain annuitants.(a) Any annuitant receiving a retirement annuity on June 30, 1969 and  any member retiring after June 30, 1969 shall be eligible for the annual  increases provided under this Section provided the annuitant is ineligible  for the automatic annual increase in annuity provided under Section  16-133.1, and provided further that (1) retirement occurred at age 55 or over  and was based on 5 or more years of creditable service or (2) if  retirement occurred prior to age 55, the retirement annuity  was based on 20 or more years of creditable service.(b) This subsection (b) is subject to subsections (b-1) and (b-2). An annuitant entitled to increases under this Section shall be entitled  to the initial increase as of the later of: (1) January 1 following  attainment of age 65, (2) January 1 following the first anniversary  of retirement, or (3) the first day of the month following receipt of  the required qualifying contribution from the annuitant.  The initial monthly  increase shall be computed on the basis of the period elapsed between  the later of the date of last retirement or attainment of age 50 and the  date of qualification for the initial increase, at the rate of 1 1/2% of  the original monthly retirement annuity per year for periods  prior to September 1, 1971, and at the rate of 2% per year for periods between  September 1, 1971 and September 1, 1978, and at the rate of 3% per year  for periods thereafter.An annuitant who has received an initial increase under this Section,  shall be entitled, on each January 1 following the granting of the  initial increase, to an increase of 3% of the original monthly retirement  annuity for increases granted prior to January 1, 1990, and equal to 3%  of the total annuity, including previous increases under this Section, for  increases granted on or after January 1, 1990.  The original monthly  retirement annuity for computations under this subsection  (b) shall be considered to be $83.34 for any annuitant entitled to benefits  under Section 16-134. The minimum original disability retirement annuity  for computations under this subsection (b) shall be considered to be  $33.34 per month for any annuitant retired on account of disability.(b-1) Notwithstanding subsection (b), but subject to the provisions of subsection (b-2), all automatic increases payable under subsection (b) 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; however, in the case of an initial increase under subsection (b)  that is subject to this subsection, if more than one year has elapsed from the date of retirement to the effective date of the initial  increase under this Section, the applicable percentage shall be the sum of the percentages for each such elapsed year.Beginning January 1, 2016, the $1,000 referred to in item (2) of this subsection (b-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 (b-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 (b-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.(b-2) Notwithstanding subsections (b) and (b-1), for an active or inactive Tier 1 member who is subject to this Section and has not begun to receive a retirement annuity under this Article before July 1, 2014:(1) the second automatic annual increase payable     under subsection (b) 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 (b) 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 (b) 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 (b) 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 (b-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.(c) An annuitant who otherwise qualifies for annual  increases under this Section must make a one-time payment of  1% of the monthly final average salary for each full year of the creditable  service forming the basis of the retirement annuity or, if the  retirement annuity was not computed using final average salary, 1% of the  original monthly retirement annuity for each full year of service  forming the basis of the retirement annuity.(d) In addition to other increases which may be provided by this Section,  regardless of creditable service, annuitants not meeting  the service requirements of Section 16-133.1 and whose retirement annuity  began on or before January 1, 1971 shall receive, on January  1, 1981, an increase in the retirement annuity then being paid  of one dollar per month for each year of creditable service forming  the basis of the retirement allowance.  On January 1, 1982, annuitants  whose retirement annuity began on or before January 1, 1977, shall receive  an increase in the retirement annuity then being paid of one dollar per  month for each year of creditable service.On January 1, 1987, any annuitant whose retirement annuity began  on or before January 1, 1977, shall receive an increase in the monthly  retirement annuity equal to 8¢ per year of creditable service times the  number of years that have elapsed since the annuity began.  (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. 16-136.1.     Annual increase for certain annuitants.(a) Any annuitant receiving a retirement annuity on June 30, 1969 and  any member retiring after June 30, 1969 shall be eligible for the annual  increases provided under this Section provided the annuitant is ineligible  for the automatic annual increase in annuity provided under Section  16-133.1, and provided further that (1) retirement occurred at age 55 or over  and was based on 5 or more years of creditable service or (2) if  retirement occurred prior to age 55, the retirement annuity  was based on 20 or more years of creditable service.(b) An annuitant entitled to increases under this Section shall be entitled  to the initial increase as of the later of: (1) January 1 following  attainment of age 65, (2) January 1 following the first anniversary  of retirement, or (3) the first day of the month following receipt of  the required qualifying contribution from the annuitant.  The initial monthly  increase shall be computed on the basis of the period elapsed between  the later of the date of last retirement or attainment of age 50 and the  date of qualification for the initial increase, at the rate of 1 1/2% of  the original monthly retirement annuity per year for periods  prior to September 1, 1971, and at the rate of 2% per year for periods between  September 1, 1971 and September 1, 1978, and at the rate of 3% per year  for periods thereafter.An annuitant who has received an initial increase under this Section,  shall be entitled, on each January 1 following the granting of the  initial increase, to an increase of 3% of the original monthly retirement  annuity for increases granted prior to January 1, 1990, and equal to 3%  of the total annuity, including previous increases under this Section, for  increases granted on or after January 1, 1990.  The original monthly  retirement annuity for computations under this subsection  (b) shall be considered to be $83.34 for any annuitant entitled to benefits  under Section 16-134. The minimum original disability retirement annuity  for computations under this subsection (b) shall be considered to be  $33.34 per month for any annuitant retired on account of disability.(c) An annuitant who otherwise qualifies for annual  increases under this Section must make a one-time payment of  1% of the monthly final average salary for each full year of the creditable  service forming the basis of the retirement annuity or, if the  retirement annuity was not computed using final average salary, 1% of the  original monthly retirement annuity for each full year of service  forming the basis of the retirement annuity.(d) In addition to other increases which may be provided by this Section,  regardless of creditable service, annuitants not meeting  the service requirements of Section 16-133.1 and whose retirement annuity  began on or before January 1, 1971 shall receive, on January  1, 1981, an increase in the retirement annuity then being paid  of one dollar per month for each year of creditable service forming  the basis of the retirement allowance.  On January 1, 1982, annuitants  whose retirement annuity began on or before January 1, 1977, shall receive  an increase in the retirement annuity then being paid of one dollar per  month for each year of creditable service.On January 1, 1987, any annuitant whose retirement annuity began  on or before January 1, 1977, shall receive an increase in the monthly  retirement annuity equal to 8¢ per year of creditable service times the  number of years that have elapsed since the annuity began.    (Source: P.A. 86-273.)