40 ILCS 5/3-111
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 3 - Police Pension Fund - Municipalities 500,000 And Under

 (from Ch. 108 1/2, par. 3-111)Sec. 3-111. Pension.(a) A police officer age 50 or more with 20 or  more years of creditable service, who is not a participant in the  self-managed plan under Section 3-109.3 and who is no longer in service  as a police officer, shall receive a pension of 1/2 of the salary  attached to the rank held by the officer on the police force for one year  immediately prior to retirement or, beginning July 1, 1987 for persons  terminating service on or after that date, the salary attached to the rank  held on the last day of service or for one year prior to the last day,  whichever is greater.  The pension shall be increased by 2.5%  of such salary for each additional year of service over 20 years of service  through 30 years of service, to a maximum of 75% of such  salary.The changes made to this subsection (a) by this amendatory Act of the  91st General Assembly apply to all pensions that become payable under this  subsection on or after January 1, 1999.  All pensions payable under this  subsection that began on or after January 1, 1999 and before the effective date  of this amendatory Act shall be recalculated, and the amount of the increase  accruing for that period shall be payable to the pensioner in a lump sum.(a-5) No pension in effect on or granted after June 30, 1973 shall be  less than $200 per month.  Beginning July 1, 1987, the minimum retirement  pension for a police officer having at least 20 years of creditable service  shall be $400 per month, without regard to whether or not retirement occurred  prior to that date.  If the minimum pension established in Section 3-113.1 is greater than the  minimum provided in this subsection, the Section 3-113.1 minimum controls.(b) A police officer mandatorily retired from service  due to age by operation of law, having at least 8 but  less than 20 years of creditable service, shall receive a pension  equal to 2 1/2% of the salary attached to the rank he or she held on  the police force for one year immediately prior to retirement or,  beginning July 1, 1987 for persons terminating service on or after that  date, the salary attached to the rank held on the last day of service or  for one year prior to the last day, whichever is greater, for each  year of creditable service.A police officer who retires or is separated from service having at least 8  years but less than 20 years of creditable service, who is not mandatorily  retired due to age by operation of law, and who does not apply for a refund of  contributions at his or her last separation from police service, shall receive  a pension upon attaining age 60 equal to 2.5% of the salary attached to the  rank held by the police officer on the police force for one year immediately  prior to retirement or, beginning July 1, 1987 for persons terminating service  on or after that date, the salary attached to the rank held on the last day of  service or for one year prior to the last day, whichever is greater, for each  year of creditable service.(c) A police officer no longer in service who has at least one but less  than 8 years of creditable service in a police pension fund but meets the  requirements of this subsection (c) shall be eligible to receive a pension from  that fund equal to 2.5% of the salary attached to the rank held on the last day  of service under that fund or for one year prior to that last day, whichever is  greater, for each year of creditable service in that fund.  The pension shall  begin no earlier than upon attainment of age 60 (or upon mandatory retirement  from the fund by operation of law due to age, if that occurs before age 60) and  in no event before the effective date of this amendatory Act of 1997.In order to be eligible for a pension under this subsection (c), the police  officer must have at least 8 years of creditable service in a second police  pension fund under this Article and be receiving a pension under subsection (a)  or (b) of this Section from that second fund.  The police officer need not be  in service on or after the effective date of this amendatory Act of 1997.(d) Notwithstanding any other provision of this Article,  the provisions of this subsection (d) apply to a person who is not a participant in the self-managed plan under Section 3-109.3 and who first  becomes a police officer under this Article on or after January 1, 2011.A police officer age 55 or more who has 10 or more years of service in that capacity shall be entitled at his option to receive a monthly pension for his service as a police officer computed by multiplying 2.5% for each year of such service by his or her final average salary.The pension of a police officer who is retiring after attaining age 50 with 10 or more years of creditable service shall be reduced by one-half of 1% for each month that the police officer's age is under age 55.The maximum pension under this subsection (d) shall be 75%  of final average salary.For the purposes of this subsection (d), "final average salary" means the greater of: (i) the average monthly salary obtained by dividing the total salary of the police officer during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period; or (ii) the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period.Beginning on January 1, 2011, for all purposes under  this Code (including without limitation the calculation of  benefits and employee contributions), the annual salary  based on the plan year of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) 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, including all previous adjustments.Nothing in this amendatory Act of the 101st General Assembly shall cause or otherwise result in any retroactive adjustment of any employee contributions. (Source: P.A. 101-610, eff. 1-1-20.)