40 ILCS 5/8-138
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 8 - Municipal Employees', Officers', And Officials' Annuity And Benefit Fund--Cities Over 500,000 Inhabitants

 (from Ch. 108 1/2, par. 8-138)Sec. 8-138. Minimum annuities - Additional provisions.(a) An employee who withdraws after age 65 or more with at least 20  years of service, for whom the amount of age and service and prior service  annuity combined is less than the amount stated in this Section, shall  from the date of withdrawal, instead of all annuities  otherwise provided, be entitled to receive an annuity for life of $150 a  year, plus 1 1/2% for each year of service, to and including 20 years, and  1 2/3% for each year of service over 20 years, of his highest average  annual salary for any 4 consecutive years within the last 10 years of  service immediately preceding the date of withdrawal.An employee who withdraws after 20 or more years of service, before age  65, shall be entitled to such annuity, to begin not earlier than upon  attained age of 55 years if under such age at withdrawal, reduced by 2% for  each full year or fractional part thereof that his attained age is less  than 65, plus an additional 2% reduction for each full year or fractional  part thereof that his attained age when annuity is to begin is less than 60  so that the total reduction at age 55 shall be 30%.(b) An employee who withdraws after July 1, 1957, at age 60 or over,  with 20 or more years of service, for whom the age and service and prior  service annuity combined, is less than the amount stated in this paragraph,  shall, from the date of withdrawal, instead of such annuities, be entitled  to receive an annuity for life equal to 1 2/3% for each year of service, of  the highest average annual salary for any 5 consecutive years within the  last 10 years of service immediately preceding the date of withdrawal;  provided, that in the case of any employee who withdraws on or after July  1, 1971, such employee age 60 or over with 20 or more years of service,  shall receive an annuity for life equal to 1.67% 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 of service in excess of 30, based on the highest  average annual salary for any 4 consecutive years within the last 10 years  of service immediately preceding the date of withdrawal.An employee who withdraws after July 1, 1957 and before January 1,  1988, with 20 or more years of service, before age 60 years is entitled to  annuity, to begin not earlier than upon attained age of 55 years, if under  such age at withdrawal, as computed in the last preceding paragraph,  reduced 0.25% for each full month or fractional part thereof that his  attained age when annuity is to begin is less than 60 if the employee was  born before January 1, 1936, or 0.5% for each such month if the employee  was born on or after January 1, 1936.Any employee born before January 1, 1936, who withdraws with 20 or more  years of service, and any employee with 20 or more years of service who  withdraws on or after January 1, 1988, may elect to receive, in lieu of any  other employee annuity provided in this Section, an annuity for life equal  to 1.80% for each of the first 10 years of service, 2.00% for each of the  next 10 years of service, 2.20% for each year of service in excess of 20  but not exceeding 30, and 2.40% for each year of service in excess of 30,  of the highest average annual salary for any 4 consecutive  years within the last 10 years of service immediately preceding the date of  withdrawal, to begin not earlier than upon attained age of 55 years, if  under such age at withdrawal, reduced 0.25% for each full month or fractional  part thereof that his attained age when annuity is to begin is less than  60; except that an employee retiring on or after January 1, 1988, at age  55 or over but less than age 60, having at least 35 years of service,  or an employee retiring on or after July 1, 1990, at age 55 or over but  less than age 60, having at least 30 years of service,  or an employee retiring on or after the effective date of this amendatory  Act of 1997, at age 55 or over but less than age 60, having at least 25 years  of service, shall not be subject to the reduction in retirement annuity  because of retirement below age 60.However, in the case of an employee who retired on or after January 1,  1985 but before January 1, 1988, at age 55 or older and with at least 35  years of service, and who was subject under this subsection (b) to the  reduction in retirement annuity because of retirement below age 60, that  reduction shall cease to be effective January 1, 1991, and the retirement  annuity shall be recalculated accordingly.Any employee who withdraws on or after July 1, 1990, with 20 or more years of  service, may elect to receive, in lieu of any other employee annuity provided  in this Section, an annuity for life equal to 2.20% for each year of service  if withdrawal is before January 1, 2002, or 2.40% for each year of  service if withdrawal is on or after January 1, 2002,  of the highest average annual salary for any 4 consecutive years within the  last 10 years of service immediately preceding the date of withdrawal, to begin  not earlier than upon attained  age of 55 years, if under such age at withdrawal, reduced 0.25% for each  full month or fractional part thereof that his attained age when annuity is  to begin is less than 60; except that an employee retiring at age 55 or  over but less than age 60, having at least 30 years of service, shall not  be subject to the reduction in retirement annuity because of retirement below  age 60.Any employee who withdraws on or after the effective date of this  amendatory Act of 1997 with 20 or more years of service may elect to receive,  in lieu of any other employee annuity provided in this Section, an annuity for  life equal to 2.20% for each year of service, if withdrawal is before  January 1, 2002, or 2.40% for each year of service if withdrawal is  on or  after January 1, 2002, of the highest average annual  salary for any 4 consecutive years within the last 10 years of service  immediately preceding the date of withdrawal, to begin not earlier than upon  attainment of age 55 (age 50 if the employee has at least 30 years of service),  reduced 0.25% for each full month or remaining fractional part thereof that the  employee's attained age when annuity is to begin is less than 60; except that  an employee retiring at age 50 or over with at least 30 years of service or at  age 55 or over with at least 25 years of service shall not be subject to the  reduction in retirement annuity because of retirement below age 60.The maximum annuity payable under part (a) and (b) of this Section shall  not exceed 70% of highest average annual salary in the case of an employee  who withdraws prior to July 1, 1971, 75% if withdrawal takes place on  or after July 1, 1971 and prior to January 1, 2002, or 80% if  withdrawal  takes place on or after January 1, 2002.  For the  purpose of the minimum  annuity provided in this Section $1,500 is considered the minimum annual  salary for any year; and the maximum annual salary for the computation of such  annuity is $4,800 for any year before 1953, $6000 for the years 1953 to 1956,  inclusive, and the actual annual salary, as salary is defined in this Article,  for any year thereafter.To preserve rights existing on December 31, 1959, for participants and  contributors on that date to the fund created by the Court and Law  Department Employees' Annuity Act, who became participants in the fund  provided for on January 1, 1960, the maximum annual salary to be considered  for such persons for the years 1955 and 1956 is $7,500.(c) For an employee receiving disability benefit, his salary for annuity  purposes under paragraphs (a) and (b) of this Section, for all periods of  disability benefit subsequent to the year 1956, is the amount on which his  disability benefit was based.(d) An employee with 20 or more years of service, whose entire disability  benefit credit period expires before  attainment of age 55 while still disabled for service, is entitled upon  withdrawal to the larger of (1) the minimum annuity provided above, assuming he  is then age 55, and reducing such annuity to its actuarial equivalent as of his  attained age on such date or (2) the annuity provided from his age and service  and prior service annuity credits.(e) The minimum annuity provisions do not apply to any former municipal  employee receiving an annuity from the fund who re-enters service as a  municipal employee, unless he renders at least 3 years of additional  service after the date of re-entry.(f) An employee in service on July 1, 1947, or who became a contributor  after July 1, 1947 and before attainment of age 70, who withdraws after age  65, with less than 20 years of service for whom the annuity has been fixed  under this Article shall, instead of the annuity so fixed, receive an  annuity as follows:Such amount as he could have received had the accumulated amounts for  annuity been improved with interest at the effective rate to the date of  his withdrawal, or to attainment of age 70, whichever is earlier, and had  the city contributed to such earlier date for age and service annuity the  amount that it would have contributed had he been under age 65, after the  date his annuity was fixed in accordance with this Article, and assuming  his annuity were computed from such accumulations as of his age on such  earlier date. The annuity so computed shall not exceed the annuity which  would be payable under the other provisions of this Section if the employee  was credited with 20 years of service and would qualify for annuity thereunder.(g) Instead of the annuity provided in this Article, an employee having  attained age 65 with at least 15 years of service who withdraws from  service on or after July 1, 1971 and whose annuity computed under other  provisions of this Article is less than the amount provided under this  paragraph, is entitled to a minimum annuity for life equal to 1% of the  highest average annual salary, as salary is defined and limited in this  Section for any 4 consecutive years within the last 10 years of service for  each year of service, plus the sum of $25 for each year of service. The  annuity shall not exceed 60% of such highest average annual salary.(g-1) Instead of any other retirement annuity provided in this Article,  an employee who has at least 10 years of service and withdraws from service  on or after January 1, 1999 may elect to receive a retirement annuity for  life, beginning no earlier than upon attainment of age 60, equal to 2.2%  if withdrawal is before January 1, 2002, or 2.4% if withdrawal is on  or after January 1, 2002, of final average salary for each  year of service,  subject to a maximum of 75% of final average salary if withdrawal is before  January 1, 2002, or 80% if withdrawal is on or after January 1, 2002.  For  the purpose of calculating this annuity, "final average salary" means the  highest average annual salary for any 4 consecutive years in the last 10 years  of service. Notwithstanding any provision of this subsection to the contrary, the "final average salary" for a participant that received credit under subsection (c) of Section 8-226 means the highest average salary for any 4 consecutive years (or any 8 consecutive years if the employee first became a participant on or after January 1, 2011) in the 10 years immediately prior to the leave of absence, and adding to that highest average salary, the product of (i) that highest average salary, (ii) the average percentage increase in the Consumer Price Index during each 12-month calendar year for the calendar years during the participant's leave of absence, and (iii) the length of the leave of absence in years, provided that this shall not exceed the participant's salary at the local labor organization.  For purposes of this Section, the Consumer Price Index is the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor.(h) The minimum annuities provided under this Section shall be paid in  equal monthly installments.(i) The amendatory provisions of part (b) and (g) of this Section shall  be effective July 1, 1971 and apply in the case of every qualifying  employee withdrawing on or after July 1, 1971.(j) The amendatory provisions of this amendatory Act of 1985 (P.A.  84-23) relating to the discount of annuity because of retirement prior to  attainment of age 60, and to the retirement formula, for those born before  January 1, 1936, shall apply only to qualifying employees withdrawing on or  after July 18, 1985.(j-1) The changes made to this Section by Public Act 92-609 (increasing the retirement  formula to 2.4% per year of service and increasing the maximum to 80%) apply  to persons who withdraw from service on or after January 1, 2002, regardless  of whether that withdrawal takes place before the effective date of that Act.  In the case of a person who withdraws from service  on or after January 1, 2002 but begins to receive a retirement annuity before  July 1, 2002, the annuity  shall be recalculated, with the increase resulting from Public Act 92-609  accruing from the date the retirement annuity  began.  The changes made by Public Act 92-609 control over the changes made  by Public Act 92-599, as provided in Section 95 of P.A. 92-609.(k) Beginning on January 1, 1999, the minimum amount of employee's annuity  shall be $850 per month for life for the following classes of employees,  without regard to the fact that withdrawal occurred prior to the effective date  of this amendatory Act of 1998:(1) any employee annuitant alive and receiving a life     annuity on the effective date of this amendatory Act of 1998, except a reciprocal annuity;(2) any employee annuitant alive and receiving a term     annuity on the effective date of this amendatory Act of 1998, except a reciprocal annuity;(3) any employee annuitant alive and receiving a     reciprocal annuity on the effective date of this amendatory Act of 1998, whose service in this fund is at least 5 years;(4) any employee annuitant withdrawing after age 60     on or after the effective date of this amendatory Act of 1998, with at least 10 years of service in this fund.The increases granted under items (1), (2) and (3) of this subsection (k)  shall not be limited by any other Section of this Act.  (Source: P.A. 97-651, eff. 1-5-12; 98-756, eff. 7-16-14.)