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Bruce Rauner, Governor

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   Public Act 96-0889   

Public Act 96-0889


Governor Quinn signed Public Act 96-0889 into law on April 14, 2010 creating a “second-tier” of benefits for future members of the State Employees’ Retirement System.

The most significant changes include increasing the minimum retirement age for future members, reducing the annual COLAs future members will receive in retirement, and increasing the surviving spouse annuity.

This legislation only affects employees hired after December 31, 2010. Current members of SERS are not affected by this legislation!

Benefit Changes Include:

• In order to qualify for a retirement benefit, an employee must be 67 years old with 10 years of service. An employee could retire at age 62 with 10 years of service, but with a reduction in benefits of one-half of one percent per month for each month the member’s age is under 67.

• Calculates the retirement benefit on a maximum salary of $106,800. This amount increases annually by three percent or one-half of the Consumer Price Index, whichever is less.

• Stops compounding annual cost of living increases. The original retirement benefit increases annually by three percent or one-half of the Consumer Price Index, whichever is less.

• Limits participation in the “alternative formula,” which provides enhanced benefits for members in high-risk state jobs.

• Tightens the restrictions on retired SERS members who go to work full-time for an employer covered by a reciprocal pension system. Pension payments would be suspended during this time.

• Increases the number of months used to calculate the final average rate of pay to the highest 96 months of the last ten years of service.

• Increases the surviving spouse annuity to 66-2/3% of what the deceased member had been receiving.

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