40 ILCS 5/11-134.3
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 11 - Laborers' And Retirement Board Employees' Annuity And Benefit Fund--Cities Over 500,000 Inhabitants

 (from Ch. 108 1/2, par. 11-134.3)(Text of Section WITH the changes made by P.A. 98-641, which has been held unconstitutional)Sec. 11-134.3. Automatic increases in annuity for certain heretofore retired  participants.(a) A retired employee who (i) is receiving annuity based on a  service credit of 20 or more years regardless of age at retirement or based on  a service credit of 15 or more years with retirement at age 55 or over, and  (ii) does not qualify for the automatic increases in annuity provided for in  Section 11-134.1 of this Article, and (iii) elects to make a contribution to the  Fund at a time and manner prescribed by the Retirement Board, of a sum  equal to 1% of the amount of final monthly salary times the number of full  years of service on which the annuity was based in those cases where the  annuity was computed on the money purchase formula, and in those cases in  which the annuity was computed under the minimum annuity formula provisions  of this Article a sum equal to 1% of the average monthly salary on which  the annuity was based times such number of full years of service, shall  have his original fixed and payable monthly amount of annuity increased in  January of the year following the year in which he attains the age of 65  years, if such age of 65 years is attained in the year 1969 or later, by an  amount equal to 1 1/2%, and by an equal additional 1 1/2% in January of  each year thereafter.  Beginning with January of the year 1972, such  increases shall be at the rate of 2% in lieu of the aforesaid specified 1  1/2%.  Beginning January, 1984, such increases shall be at the rate of 3%.  Beginning in January of 1999, such increases shall be at the rate of  3% of the currently payable monthly annuity, including any increases previously  granted under this Article.In those cases in which the retired employee receiving annuity has  attained the age of 66 or more years in the year 1969, he shall have such  annuity increased in January of the year 1970 by an amount equal to 1 1/2%  multiplied by the number equal to the number of months of January elapsing  from and including January of the year immediately following the year he  attained the age of 65 years if retired at or prior to age 65, or from and  including January of the year immediately following the year of retirement  if retired at an age greater than 65 years, to and including January of the  year 1970, and by an equal additional 1 1/2% in January of each year  thereafter. Beginning with January of the year 1972, such increases shall  be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.  Beginning  January, 1984, such increases shall be at the rate of 3%.  Beginning in January of 1999, such increases shall be at the rate of  3% of the currently payable monthly annuity, including any increases previously  granted under this Article.(b) To defray the annual cost of such increases, the annual interest income  of the Fund, accruing from investments held by the Fund, exclusive of gains  or losses on sales or exchanges of assets during the year, over and above  4% a year, shall be used to the extent necessary and available to finance  the cost of such increases for the following year, and such amount shall be  transferred as of the end of each year, beginning with the year 1969, to a  Fund account designated as the Supplementary Payment Reserve from the  Investment and Interest Reserve set forth in Sec. 11-210. The sums  contributed by annuitants as provided for in this Section shall also be  placed in the aforesaid Supplementary Payment Reserve and shall be applied  for and used for the purposes of such Fund account, together with the  aforesaid interest.In the event the monies in the Supplementary Payment Reserve in any year  arising from: (1) the available interest income as defined hereinbefore and  accruing in the preceding year above 4% a year and (2) the contributions by  retired persons, as set forth hereinbefore, are insufficient to make the  total payments to all persons estimated to be entitled to the annuity  increases specified hereinbefore, then (3) any interest earnings over 4% a  year beginning with the year 1969 which were not previously used to finance  such increases and which were transferred to the Prior Service Annuity  Reserve may be used to the extent necessary and available to provide  sufficient funds to finance such increases for the current year, and such  sums shall be transferred from the Prior Service Annuity Reserve.In the event the total monies available in the Supplementary Payment  Reserve from the preceding indicated sources are insufficient to make the  total payments to all persons entitled to such increases for the year, a  proportionate amount computed as the ratio of the monies available to the  total of the total payments for that year shall be paid to each person for  that year.The Fund shall be obligated for the payment of the increases in annuity  as provided for in this Section only to the extent that the assets for such  purpose, as specified herein, are available.(b-5) Notwithstanding any provision of this Section to the contrary:(1) Except for persons eligible under subdivision (3)     of this subsection for a minimum annual increase, there shall be no annual increase under this Section in years 2017, 2019, and 2025.(2)  In all other years, beginning January 1, 2015,     the Fund shall pay an annual increase to persons eligible to receive one under this Section, in lieu of any other annual increase provided under this Section (but subject to the minimum increase under subdivision (3) of this subsection, if applicable) in an amount equal to 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 person's last annual annuity amount prior to January 1, 2015.For the purposes of this Section, "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.(3) A person is eligible under this subdivision (3)     to receive a minimum annual increase in a particular year if: (i) the person is otherwise eligible to receive an annual increase under subdivision (2) of this subsection, and (ii) the annual amount of the annuity payable at the time of the increase, including all increases previously received, is less than $22,000.Beginning January 1, 2015, for a person who is     eligible under this subdivision (3) to receive a minimum annual increase in the year 2017, 2019, or 2025, the annual increase shall be 1% of the person's last annual annuity amount prior to January 1, 2015.Beginning January 1, 2015, for any other year in     which a person is eligible under this subdivision (3) to receive a minimum annual increase, the annual increase shall be as specified under subdivision (2), but not less than 1% of the person's last annual annuity amount prior to January 1, 2015.For the purposes of  Section 1-103.1, this subsection (b-5) is applicable without regard to whether the employee was in active service on or after the effective date of this amendatory Act of the 98th General Assembly. This subsection (b-5) applies to any former employee who on or after the effective date of this amendatory Act of the 98th General Assembly is receiving a retirement annuity and is  eligible for an automatic annual increase under this Section. (Source: P.A. 98-641, eff. 6-9-14.)(Text of Section WITHOUT the changes made by P.A. 98-641, which has been held unconstitutional)Sec. 11-134.3. Automatic increases in annuity for certain heretofore retired  participants.  A retired employee who (a) is receiving annuity based on a  service credit of 20 or more years regardless of age at retirement or based on  a service credit of 15 or more years with retirement at age 55 or over, and   (b) does not qualify for the automatic increases in annuity provided for in  Section 11-134.1 of this Article, and (c) elects to make a contribution to the  Fund at a time and manner prescribed by the Retirement Board, of a sum  equal to 1% of the amount of final monthly salary times the number of full  years of service on which the annuity was based in those cases where the  annuity was computed on the money purchase formula, and in those cases in  which the annuity was computed under the minimum annuity formula provisions  of this Article a sum equal to 1% of the average monthly salary on which  the annuity was based times such number of full years of service, shall  have his original fixed and payable monthly amount of annuity increased in  January of the year following the year in which he attains the age of 65  years, if such age of 65 years is attained in the year 1969 or later, by an  amount equal to 1 1/2%, and by an equal additional 1 1/2% in January of  each year thereafter.  Beginning with January of the year 1972, such  increases shall be at the rate of 2% in lieu of the aforesaid specified 1  1/2%.  Beginning January, 1984, such increases shall be at the rate of 3%.  Beginning in January of 1999, such increases shall be at the rate of  3% of the currently payable monthly annuity, including any increases previously  granted under this Article.In those cases in which the retired employee receiving annuity has  attained the age of 66 or more years in the year 1969, he shall have such  annuity increased in January of the year 1970 by an amount equal to 1 1/2%  multiplied by the number equal to the number of months of January elapsing  from and including January of the year immediately following the year he  attained the age of 65 years if retired at or prior to age 65, or from and  including January of the year immediately following the year of retirement  if retired at an age greater than 65 years, to and including January of the  year 1970, and by an equal additional 1 1/2% in January of each year  thereafter. Beginning with January of the year 1972, such increases shall  be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.  Beginning  January, 1984, such increases shall be at the rate of 3%.  Beginning in January of 1999, such increases shall be at the rate of  3% of the currently payable monthly annuity, including any increases previously  granted under this Article.To defray the annual cost of such increases, the annual interest income  of the Fund, accruing from investments held by the Fund, exclusive of gains  or losses on sales or exchanges of assets during the year, over and above  4% a year, shall be used to the extent necessary and available to finance  the cost of such increases for the following year, and such amount shall be  transferred as of the end of each year, beginning with the year 1969, to a  Fund account designated as the Supplementary Payment Reserve from the  Investment and Interest Reserve set forth in Sec. 11-210. The sums  contributed by annuitants as provided for in this Section shall also be  placed in the aforesaid Supplementary Payment Reserve and shall be applied  for and used for the purposes of such Fund account, together with the  aforesaid interest.In the event the monies in the Supplementary Payment Reserve in any year  arising from: (1) the available interest income as defined hereinbefore and  accruing in the preceding year above 4% a year and (2) the contributions by  retired persons, as set forth hereinbefore, are insufficient to make the  total payments to all persons estimated to be entitled to the annuity  increases specified hereinbefore, then (3) any interest earnings over 4% a  year beginning with the year 1969 which were not previously used to finance  such increases and which were transferred to the Prior Service Annuity  Reserve may be used to the extent necessary and available to provide  sufficient funds to finance such increases for the current year, and such  sums shall be transferred from the Prior Service Annuity Reserve.In the event the total monies available in the Supplementary Payment  Reserve from the preceding indicated sources are insufficient to make the  total payments to all persons entitled to such increases for the year, a  proportionate amount computed as the ratio of the monies available to the  total of the total payments for that year shall be paid to each person for  that year.The Fund shall be obligated for the payment of the increases in annuity  as provided for in this Section only to the extent that the assets for such  purpose, as specified herein, are available.  (Source: P.A. 90-766, eff. 8-14-98.)