40 ILCS 5/7-142
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 7 - Illinois Municipal Retirement Fund

 (from Ch. 108 1/2, par. 7-142)Sec. 7-142. Retirement annuities - Amount.(a) The amount of a retirement annuity shall be the sum of the  following, determined in accordance with the actuarial tables in effect at  the time of the grant of the annuity:1.  For Tier 1 regular employees with 8 or more years     of service or for Tier 2 regular employees, an annuity computed pursuant to subparagraphs a or b of this subparagraph 1, whichever is the higher, and for employees with less than 8 or 10 years of service, respectively, the annuity computed pursuant to subparagraph a:a.  The monthly annuity which can be provided         from the total accumulated normal, municipality and prior service credits, as of the attained age of the employee on the date the annuity begins provided that such annuity shall not exceed 75% of the final rate of earnings of the employee.b. (i) The monthly annuity amount determined as         follows by multiplying (a) 1 2/3% for annuitants with not more than 15 years or (b) 1 2/3% for the first 15 years and 2% for each year in excess of 15 years for annuitants with more than 15 years by the number of years plus fractional years, prorated on a basis of months, of creditable service and multiply the product thereof by the employee's final rate of earnings.(ii) For the sole purpose of computing the         formula (and not for the purposes of the limitations hereinafter stated) $125 shall be considered the final rate of earnings in all cases where the final rate of earnings is less than such amount.(iii) The monthly annuity computed in accordance         with this subparagraph b, shall not exceed an amount equal to 75% of the final rate of earnings.(iv) For employees who have less than 35 years of         service, the annuity computed in accordance with this subparagraph b (as reduced by application of subparagraph (iii) above) shall be reduced by 0.25% thereof (0.5% if service was terminated before January 1, 1988 or if the employee is a Tier 2 regular employee) for each month or fraction thereof (1) that the employee's age is less than 60 years for Tier 1 regular employees, (2) that the employee's age is less than 67 years for Tier 2 regular employees, or (3) if the employee has at least 30 years of service credit, that the employee's service credit is less than 35 years, whichever is less, on the date the annuity begins.2. The annuity which can be provided from the total     accumulated additional credits as of the attained age of the employee on the date the annuity begins.(b) If payment of an annuity begins prior to the earliest age at  which the employee will become eligible for an old age insurance benefit  under the Federal Social Security Act, he may elect that the annuity  payments from this fund shall exceed those payable after his attaining  such age by an amount, computed as determined by rules of the Board, but  not in excess of his estimated Social Security Benefit, determined as  of the effective date of the annuity, provided that in no case shall the  total annuity payments made by this fund exceed in actuarial value the  annuity which would have been payable had no such election been made.(c) Beginning  January 1, 1984 and each January 1 thereafter, the retirement annuity of a Tier 1 regular employee shall be increased  by 3% each year, not compounded. This increase shall be computed from the effective date of the retirement annuity, the first increase being 0.25% of the monthly amount times the number of months from the effective date to January 1. This increase shall not be applicable to  annuitants who are not in service on or after September 8, 1971.A retirement annuity of a Tier 2 regular employee 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 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 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.(d) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit  on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate. (Source: P.A. 102-210, eff. 1-1-22.)