News
Benefits Available for Parties to a Civil Union
Effective June 1, 2011, the Illinois Religious Freedom Protection and Civil Union Act confers the rights of marriage available under Illinois law to parties to a civil union. Therefore, all pension benefits previously made available to a married member and his or her spouse, are now also available to a member and his or her civil union partner.
The eligibility requirements for benefits are the same for a civil union partner and married spouse. As in the case of divorce, if a member with a civil union dissolves the union, a QILDRO will be necessary in order for the Fund to divide the member’s benefits.
A copy of the completed certificate from the county clerk or the return provided to the Illinois Department of Public Health is evidence of a civil union. As with marriage certificates, LABF will only accept certified copies of the civil union certificate or the return.
As of June 1, 2011, any LABF publication or communication which includes the word spouse or widow, or any word that denotes the spousal relationship, also means and includes parties to a civil union. (back to top)
On April 14, 2010, the Illinois governor signed Senate Bill 1946 (Public Act 96-0889). The legislation created a “Second Tier” of pension benefits applicable to public employees hired on or after January 1, 2011. The law does not change benefits for members hired prior to December 31, 2010 and current annuitants
The following chart compares the First Tier of pension benefits with the Second Tier.
| First Tier | Second Tier | |
|---|---|---|
| Eligibility |
Members hired hired prior to 12/31/2010 and current annuitants |
Employees hired for the first time on or after 1/1/2011 |
| Pension Benefits |
Eligible for a benefit at age 50 with at least 30 years of service, at age 55 with at least 20 years of service, and at age 60 with at least 10 years of service |
Eligible for a benefit at age 67 with at least 10 years of service and a reduced benefit at age 62 with at least 10 years of service |
| Final Average Salary |
Average of highest 4 consecutive years within the last 10 years of service |
Average of highest 8 consecutive years within the last 10 years of service |
| Average Salary Limit | None |
$106,800 in 2011; amount increased annually by 3% or by one-half of the increase in the Consumer Price Index-Urban (CPI-U), whichever is lower |
| Cost of Living Adjustment (COLA) | 3% of the current monthly annuity |
Either 3% or one-half of the increase in the CPI-U, whichever is lower, and applied to the original annuity amount |
| COLA Eligibility |
If you retire on or after age 60, the first COLA occurs the Jan. following the first annuity payment, or between ages 50 & 60, the first COLA occurs in the Jan. of the 3rd year after retirement or in Jan. of the year you turn 60 |
Upon age 67 or first anniversary of the commencement of the annuity, whichever occurs later |
| Spousal Annuity | 50% of the pension the member had earned at the date of death |
66 2/3% of the pension the member had earned at the date of death |
| Spousal Annuity COLA | No COLA |
Either 3% or one-half of the increase in the CPI-U, whichever is lower, and applied to the original spousal annuity amount |
| Child's Annuity | $220 a month when there is an eligible surviving spouse or $250 a month when there is no eligible surviving spouse |
$220 a month when there is an eligible surviving spouse or $250 a month when there is no eligible surviving spouse |
| Refund | May take a refund if he or she withdraws from service and are under the age of 55 (with any length of service) or withdraws between the ages of 55 and 60 with less than 10 years of service |
May take a refund if he or she withdraws from service before the age of 62 (with any length of service) or withdraws with less than 10 years of service regardless of age |
The Fund continues to follow any future amendments that may affect the implementation of the Second Tier. The complete text of the law, Public Act 096-0889, is available on the Illinois General Assembly website. (back to top)