093_SB0501

 
                                     LRB093 02555 EFG 02565 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    adding Section 17-116.7 as follows:

 6        (40 ILCS 5/17-116.7 new)
 7        Sec. 17-116.7. Purchase of additional service credit.
 8        (a)  This Section applies only to a person who (i) served
 9    as a principal for at least 5 years, (ii) left service due to
10    a  failure  to  receive  a new contract from the local school
11    council, (iii) elected the early retirement without  discount
12    option   under  Section  17-116.1,  (iv)  began  receiving  a
13    retirement pension before 1992, and  (v)  has  more  than  30
14    years of service credit.
15        (b)  An eligible person may apply in writing to the Board
16    to  establish  an additional 5 years of creditable service in
17    the Fund.  The application must  be  received  by  the  Board
18    within  90 days following the effective date of this Section,
19    and must be accompanied by payment of the  amount  determined
20    under subsection (c).
21        (c)  For  each  year  of  creditable  service established
22    under this Section, the applicant must  pay  to  the  Fund  a
23    contribution  consisting  of  4% of the highest annual salary
24    rate that was used  in  the  determination  of  the  person's
25    retirement  pension.  The amount of the employee contribution
26    already paid by the person under Section  17-116.1  shall  be
27    credited  against  the total contribution required under this
28    subsection.
29        (d)  A person who has purchased  any  creditable  service
30    under this Section shall have his or her pension recalculated
31    to reflect the additional service.  The resulting increase in
 
                            -2-      LRB093 02555 EFG 02565 b
 1    pension  shall  begin  to accrue on the first pension payment
 2    date following receipt of the required  contribution  by  the
 3    Fund.
 4        (e)  A  person  who  has purchased any creditable service
 5    under  this  Section  and  whose  pension  is  suspended   or
 6    cancelled  under  Section  17-149  or  17-150  shall  thereby
 7    forfeit   that   creditable   service.    The  forfeiture  of
 8    creditable service under this subsection  shall  not  entitle
 9    the  person  to  a refund of the contribution paid under this
10    Section.
11        (f)  A person who received any early retirement incentive
12    under Section 17-116.3, 17-116.4, 17-116.5, or  17-116.6  may
13    not   purchase   additional  creditable  service  under  this
14    Section.

15        Section 90.  The State Mandates Act is amended by  adding
16    Section 8.27 as follows:

17        (30 ILCS 805/8.27 new)
18        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
19    and 8 of this Act, no reimbursement by the State is  required
20    for  the  implementation  of  any  mandate  created  by  this
21    amendatory Act of the 93rd General Assembly.

22        Section  99.  Effective date.  This Act takes effect upon
23    becoming law.