97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3397

 

Introduced 2/24/2011, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-119  from Ch. 108 1/2, par. 17-119
30 ILCS 805/8.35 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. Accelerates the initial annual increase in retirement pension to the January following the first anniversary of retirement. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3397LRB097 05111 JDS 45156 b

1    AN ACT in relation to public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 17-119 as follows:
 
6    (40 ILCS 5/17-119)  (from Ch. 108 1/2, par. 17-119)
7    Sec. 17-119. Automatic annual increase in pension.
8    (a) Each teacher retiring on or after September 1, 1959, is
9entitled to the annual increase in pension, defined herein,
10while he is receiving a pension from the Fund.
11        1. The term "base pension" means a service retirement
12    or disability retirement pension in the amount fixed and
13    payable at the date of retirement of a teacher.
14        2. The annual increase in pension shall be at the rate
15    of 1 1/2% of base pension. This increase shall first occur
16    in January of the year next following the first anniversary
17    of retirement. At such time the Fund shall pay the pro rata
18    part of the increase for the period from the first
19    anniversary date to the date of the first increase in
20    pension. Beginning January 1, 1972, the rate of annual
21    increase in pension shall be 2% of the base pension.
22    Beginning January 1, 1979, the rate of annual increase in
23    pension shall be 3% of the base pension. Beginning January

 

 

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1    1, 1990, all automatic annual increases payable under this
2    Section shall be calculated as a percentage of the total
3    pension payable at the time of the increase, including all
4    increases previously granted under this Article,
5    notwithstanding Section 17-157.
6        3. For a retired teacher who withdraws from service
7    before January 1, 2012, an increase in pension shall be
8    granted only if the retired teacher is age 60 or over. If
9    the teacher attains age 60 after retirement, the increase
10    in pension shall begin in January of the year following the
11    61st birthday. At such time the Fund also shall pay the pro
12    rata part of the increase from the 61st birthday to the
13    date of first increase in pension.
14        For a retired teacher who withdraws from service on or
15    after January 1, 2012, the increase in pension shall begin
16    in the January next following the first anniversary of
17    retirement. At such time the Fund shall also pay the pro
18    rata part of the increase from the first anniversary of
19    retirement to the date of first increase in pension.
20    (b) In addition to other increases which may be provided by
21this Section, on January 1, 1981 any teacher who was receiving
22a retirement pension on or before January 1, 1971 shall have
23his retirement pension then being paid increased $1 per month
24for each year of creditable service. On January 1, 1982, any
25teacher whose retirement pension began on or before January 1,
261977, shall have his retirement pension then being paid

 

 

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1increased $1 per month for each year of creditable service.
2    On January 1, 1987, any teacher whose retirement pension
3began on or before January 1, 1977, shall have the monthly
4retirement pension increased by an amount equal to 8¢ per year
5of creditable service times the number of years that have
6elapsed since the retirement pension began.
7(Source: P.A. 90-566, eff. 1-2-98.)
 
8    Section 90. The State Mandates Act is amended by adding
9Section 8.35 as follows:
 
10    (30 ILCS 805/8.35 new)
11    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
12of this Act, no reimbursement by the State is required for the
13implementation of any mandate created by this amendatory Act of
14the 97th General Assembly.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.