093_HB1388

 
                                     LRB093 09362 EFG 09597 b

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Section 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,
 9    is entitled  to  the  annual  increase  in  pension,  defined
10    herein, while he is receiving a pension from the Fund.
11             1.  The   term   "base   pension"  means  a  service
12        retirement or disability retirement pension in the amount
13        fixed and payable at the date of retirement of a teacher.
14             2.  The annual increase in pension shall be  at  the
15        rate of 1 1/2% of base pension. This increase shall first
16        occur  in  January  of  the year next following the first
17        anniversary of retirement. At such time  the  Fund  shall
18        pay the pro rata part of the increase for the period from
19        the  first  anniversary  date  to  the  date of the first
20        increase in pension.  Beginning January 1, 1972, the rate
21        of annual increase in pension shall be  2%  of  the  base
22        pension.   Beginning  January 1, 1979, the rate of annual
23        increase in pension shall be  3%  of  the  base  pension.
24        Beginning January 1, 1990, all automatic annual increases
25        payable  under  this  Section  shall  be  calculated as a
26        percentage of the total pension payable at  the  time  of
27        the  increase, including all increases previously granted
28        under this Article, notwithstanding Section 17-157.
29             3.  For a retired teacher who withdraws from service
30        before January 1, 2004, an increase in pension  shall  be
31        granted  only  if  the retired teacher is age 60 or over.
 
                            -2-      LRB093 09362 EFG 09597 b
 1        If the teacher  attains  age  60  after  retirement,  the
 2        increase  in  pension  shall begin in January of the year
 3        following the 61st birthday.  At such time the Fund  also
 4        shall pay the pro rata part of the increase from the 61st
 5        birthday to the date of first increase in pension.
 6             For  a retired teacher who withdraws from service on
 7        or after January 1, 2004, the increase in  pension  shall
 8        begin in the January next following the first anniversary
 9        of  retirement.  At such time the Fund shall also pay the
10        pro rata part of the increase from the first  anniversary
11        of retirement to the date of first increase in pension.
12        (b)  In addition to other increases which may be provided
13    by  this  Section,  on  January  1,  1981 any teacher who was
14    receiving a retirement pension on or before January  1,  1971
15    shall  have  his retirement pension then being paid increased
16    $1 per month for each year of creditable service.  On January
17    1, 1982, any teacher whose retirement  pension  began  on  or
18    before  January  1,  1977,  shall have his retirement pension
19    then being paid increased $1  per  month  for  each  year  of
20    creditable service.
21        On  January 1, 1987, any teacher whose retirement pension
22    began on or before January 1, 1977, shall  have  the  monthly
23    retirement  pension  increased  by  an amount equal to 8¢ per
24    year of creditable service times the  number  of  years  that
25    have elapsed since the retirement pension began.
26    (Source: P.A. 90-566, eff. 1-2-98.)

27        Section  90.  The State Mandates Act is amended by adding
28    Section 8.27 as follows:

29        (30 ILCS 805/8.27 new)
30        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
31    and  8 of this Act, no reimbursement by the State is required
32    for  the  implementation  of  any  mandate  created  by  this
 
                            -3-      LRB093 09362 EFG 09597 b
 1    amendatory Act of the 93rd General Assembly.

 2        Section 99. Effective date.  This Act takes  effect  upon
 3    becoming law.