40 ILCS 5/14-114
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 14 - State Employees' Retirement System Of Illinois

 (from Ch. 108 1/2, par. 14-114)(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)Sec. 14-114. Automatic increase in retirement annuity.(a) This subsection (a) is subject to subsections (a-1) and (a-2) of this Section. Any person receiving a retirement annuity under this Article who  retires having attained age 60, or who retires before age 60 having at  least 35 years of creditable service, or who retires on or after January  1, 2001 at an age which, when added to the number of years of his or her  creditable service, equals at least 85, shall, on January 1 next  following the first full year of retirement, have the amount of the then fixed  and payable monthly retirement annuity increased 3%.   Any person receiving a  retirement annuity under this Article who retires before attainment of age 60  and with less than (i) 35 years of creditable service if retirement  is before January 1, 2001, or (ii) the number of years of creditable service  which, when added to the member's age, would equal 85, if retirement is on  or after January 1, 2001, shall have the amount of the fixed and payable  retirement annuity increased by 3% on the January 1 occurring on or next  following (1) attainment of age 60, or (2) the first anniversary of retirement,  whichever occurs later.  However, for persons who receive the alternative  retirement annuity under Section 14-110, references in this subsection (a) to  attainment of age 60 shall be deemed to refer to attainment of age 55.  For a  person receiving early retirement incentives under Section 14-108.3 whose  retirement annuity began after January 1, 1992 pursuant to an extension granted  under subsection (e) of that Section, the first anniversary of retirement shall  be deemed to be January 1, 1993.  For a person who retires on or after June 28, 2001 and on or before October 1, 2001,  and whose retirement annuity is calculated, in whole or in part, under Section  14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of  retirement shall be deemed to be January 1, 2002.On each January 1 following the date of the initial increase under this  subsection, the employee's monthly retirement annuity shall be increased  by an additional 3%.Beginning January 1, 1990, all automatic annual increases payable under  this Section shall be calculated as a percentage of the total annuity  payable at the time of the increase, including previous increases granted  under this Article.(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), all automatic increases payable under subsection (a) 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) $800 ($1,000 for portions of the annuity based  on service as a noncovered employee) multiplied by  the number of years of creditable service upon which the  annuity is based.Beginning January 1, 2016, the $800 ($1,000 for portions of the annuity based  on service as a noncovered employee) referred in item (2) of this subsection (a-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 (a-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 (a-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.(a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 member who has not begun to receive a retirement annuity under this Article before July 1, 2014:(1) the second automatic annual increase payable     under subsection (a) 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 (a) 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 (a) 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 (a) 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 (a-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.(b) The provisions of subsection (a) of this Section shall be  applicable to an employee only if the employee makes the additional  contributions required after December 31, 1969 for the purpose of the  automatic increases for not less than the equivalent of one full year.  If an employee becomes an annuitant before his additional contributions  equal one full year's contributions based on his salary at the date of  retirement, the employee may pay the necessary balance of the  contributions to the system, without interest, and be eligible for the  increasing annuity authorized by this Section.(c) The provisions of subsection (a) of this Section shall not be  applicable to any annuitant who is on retirement on December 31, 1969, and  thereafter returns to State service, unless the member has established at  least one year of additional creditable service following reentry into service.(d) In addition to other increases which may be provided by this Section,  on January 1, 1981 any annuitant who was receiving a retirement annuity  on or before January 1, 1971 shall have his retirement annuity then being  paid increased $1 per month for each year of creditable service.  On January  1, 1982, any annuitant who began receiving a retirement annuity on or  before January 1, 1977, shall have his retirement annuity then being paid  increased $1 per month for each year of creditable service.On January 1, 1987, any annuitant who began receiving a retirement  annuity on or before January 1, 1977, shall have the monthly retirement annuity  increased by an amount equal to 8¢ per year of creditable service times the  number of years that have elapsed since the annuity began.(e) Every person who receives the alternative retirement annuity under  Section 14-110 and who is eligible to receive the 3% increase under subsection  (a) on January 1, 1986, shall also receive on that date a one-time increase  in retirement annuity equal to the difference between (1) his actual  retirement annuity on that date, including any increases received under  subsection (a), and (2) the amount of retirement annuity he would have  received on that date if the amendments to subsection (a) made by Public  Act 84-162 had been in effect since the date of his retirement.  (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. 14-114.     Automatic increase in retirement annuity.(a) Any person receiving a retirement annuity under this Article who  retires having attained age 60, or who retires before age 60 having at  least 35 years of creditable service, or who retires on or after January  1, 2001 at an age which, when added to the number of years of his or her  creditable service, equals at least 85, shall, on January 1 next  following the first full year of retirement, have the amount of the then fixed  and payable monthly retirement annuity increased 3%.  Any person receiving a  retirement annuity under this Article who retires before attainment of age 60  and with less than (i) 35 years of creditable service if retirement  is before January 1, 2001, or (ii) the number of years of creditable service  which, when added to the member's age, would equal 85, if retirement is on  or after January 1, 2001, shall have the amount of the fixed and payable  retirement annuity increased by 3% on the January 1 occurring on or next  following (1) attainment of age 60, or (2) the first anniversary of retirement,  whichever occurs later.  However, for persons who receive the alternative  retirement annuity under Section 14-110, references in this subsection (a) to  attainment of age 60 shall be deemed to refer to attainment of age 55.  For a  person receiving early retirement incentives under Section 14-108.3 whose  retirement annuity began after January 1, 1992 pursuant to an extension granted  under subsection (e) of that Section, the first anniversary of retirement shall  be deemed to be January 1, 1993.  For a person who retires on or after June 28, 2001 and on or before October 1, 2001,  and whose retirement annuity is calculated, in whole or in part, under Section  14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of  retirement shall be deemed to be January 1, 2002.On each January 1 following the date of the initial increase under this  subsection, the employee's monthly retirement annuity shall be increased  by an additional 3%.Beginning January 1, 1990, all automatic annual increases payable under  this Section shall be calculated as a percentage of the total annuity  payable at the time of the increase, including previous increases granted  under this Article.(b) The provisions of subsection (a) of this Section shall be  applicable to an employee only if the employee makes the additional  contributions required after December 31, 1969 for the purpose of the  automatic increases for not less than the equivalent of one full year.  If an employee becomes an annuitant before his additional contributions  equal one full year's contributions based on his salary at the date of  retirement, the employee may pay the necessary balance of the  contributions to the system, without interest, and be eligible for the  increasing annuity authorized by this Section.(c) The provisions of subsection (a) of this Section shall not be  applicable to any annuitant who is on retirement on December 31, 1969, and  thereafter returns to State service, unless the member has established at  least one year of additional creditable service following reentry into service.(d) In addition to other increases which may be provided by this Section,  on January 1, 1981 any annuitant who was receiving a retirement annuity  on or before January 1, 1971 shall have his retirement annuity then being  paid increased $1 per month for each year of creditable service.  On January  1, 1982, any annuitant who began receiving a retirement annuity on or  before January 1, 1977, shall have his retirement annuity then being paid  increased $1 per month for each year of creditable service.On January 1, 1987, any annuitant who began receiving a retirement  annuity on or before January 1, 1977, shall have the monthly retirement annuity  increased by an amount equal to 8¢ per year of creditable service times the  number of years that have elapsed since the annuity began.(e) Every person who receives the alternative retirement annuity under  Section 14-110 and who is eligible to receive the 3% increase under subsection  (a) on January 1, 1986, shall also receive on that date a one-time increase  in retirement annuity equal to the difference between (1) his actual  retirement annuity on that date, including any increases received under  subsection (a), and (2) the amount of retirement annuity he would have  received on that date if the amendments to subsection (a) made by Public  Act 84-162 had been in effect since the date of his retirement.    (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;  92-651, eff. 7-11-02.)