(a) The amount of the retirement annuity shall be (i) in the case of a person who first became a teacher under this Article before July 1, 2005, the larger of the amounts determined under paragraphs (A) and (B) below, or (ii) in the case of a person who first becomes a teacher under this Article on or after July 1, 2005, the amount determined under the applicable provisions of paragraph (B):
         (A) An amount consisting of the sum of the following:
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Illinois Compiled Statutes 40 ILCS 5/16-133

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Month: means a calendar month, and the word "year" a calendar year unless otherwise expressed; and the word "year" alone, is equivalent to the expression "year of our Lord. See Illinois Compiled Statutes 5 ILCS 70/1.10
  • Statute: A law passed by a legislature.

             (1) An amount that can be provided on an
        
actuarially equivalent basis by the member’s accumulated contributions at the time of retirement; and
            (2) The sum of (i) the amount that can be
        
provided on an actuarially equivalent basis by the member’s accumulated contributions representing service prior to July 1, 1947, and (ii) the amount that can be provided on an actuarially equivalent basis by the amount obtained by multiplying 1.4 times the member’s accumulated contributions covering service subsequent to June 30, 1947; and
            (3) If there is prior service, 2 times the amount
        
that would have been determined under subparagraph (2) of paragraph (A) above on account of contributions which would have been made during the period of prior service creditable to the member had the System been in operation and had the member made contributions at the contribution rate in effect prior to July 1, 1947.
        This paragraph (A) does not apply to a person who
    
first becomes a teacher under this Article on or after July 1, 2005.
        (B) An amount consisting of the greater of the
    
following:
            (1) For creditable service earned before July 1,
        
1998 that has not been augmented under Section 16-129.1: 1.67% of final average salary for each of the first 10 years of creditable service, 1.90% of final average salary for each year in excess of 10 but not exceeding 20, 2.10% of final average salary for each year in excess of 20 but not exceeding 30, and 2.30% of final average salary for each year in excess of 30; and
            For creditable service earned on or after July 1,
        
1998 by a member who has at least 24 years of creditable service on July 1, 1998 and who does not elect to augment service under Section 16-129.1: 2.2% of final average salary for each year of creditable service earned on or after July 1, 1998 but before the member reaches a total of 30 years of creditable service and 2.3% of final average salary for each year of creditable service earned on or after July 1, 1998 and after the member reaches a total of 30 years of creditable service; and
            For all other creditable service: 2.2% of final
        
average salary for each year of creditable service; or
            (2) 1.5% of final average salary for each year of
        
creditable service plus the sum $7.50 for each of the first 20 years of creditable service.
    The amount of the retirement annuity determined under
    
this paragraph (B) shall be reduced by 1/2 of 1% for each month that the member is less than age 60 at the time the retirement annuity begins. However, this reduction shall not apply (i) if the member has at least 35 years of creditable service, or (ii) if the member retires on account of disability under Section 16-149.2 of this Article with at least 20 years of creditable service, or (iii) if the member (1) has earned during the period immediately preceding the last day of service at least one year of contributing creditable service as an employee of a department as defined in Section 14-103.04, (2) has earned at least 5 years of contributing creditable service as an employee of a department as defined in Section 14-103.04, (3) retires on or after January 1, 2001, and (4) retires having attained an age which, when added to the number of years of his or her total creditable service, equals at least 85. Portions of years shall be counted as decimal equivalents.
    (b) For purposes of this Section, except as provided in subsection (b-5), final average salary shall be the average salary for the highest 4 consecutive years within the last 10 years of creditable service as determined under rules of the board.
     The minimum final average salary shall be considered to be $2,400 per year.
     In the determination of final average salary for members other than elected officials and their appointees when such appointees are allowed by statute, that part of a member’s salary for any year beginning after June 30, 1979 which exceeds the member’s annual full-time salary rate with the same employer for the preceding year by more than 20% shall be excluded. The exclusion shall not apply in any year in which the member’s creditable earnings are less than 50% of the preceding year’s mean salary for downstate teachers as determined by the survey of school district salaries provided in Section 2-3.103 of the School Code.
     (b-5) A teacher who retires on or after June 1, 2021 and for whom the 2020-2021 school year is used in the calculation of the member’s final average salary shall use the higher of the following for the purpose of determining the member’s final average salary:
         (A) the amount otherwise calculated under subsection
    
(b); or
        (B) an amount calculated by the System using the
    
average salary for the 4 highest years within the last 10 years of creditable service as determined under the rules of the board.
    (c) In determining the amount of the retirement annuity under paragraph (B) of this Section, a fractional year shall be granted proportional credit.
     (d) The retirement annuity determined under paragraph (B) of this Section shall be available only to members who render teaching service after July 1, 1947 for which member contributions are required, and to annuitants who re-enter under the provisions of Section 16-150.
     (e) The maximum retirement annuity provided under paragraph (B) of this Section shall be 75% of final average salary.
     (f) A member retiring after the effective date of this amendatory Act of 1998 shall receive a pension equal to 75% of final average salary if the member is qualified to receive a retirement annuity equal to at least 74.6% of final average salary under this Article or as proportional annuities under Article 20 of this Code.
  Previous section
Next section  
 Article 16 Contents