(40 ILCS 5/16-129.1)
Optional increase in retirement annuity.
(a) A member of the System may qualify for the augmented rate under
subdivision (a)(B)(1) of Section 16-133 for all years of creditable service
earned before July 1, 1998 by making the optional contribution specified in
subsection (b). A member may not elect to qualify for the augmented rate for
only a portion of his or her creditable service earned before July 1, 1998.
(b) The contribution shall be an amount equal to 1.0% of the member's
highest salary rate in the 4 consecutive school years immediately prior to but
not including the school year in which the application occurs, multiplied by
the number of years of creditable service earned by the member before July 1,
1998 or 20, whichever is less. This contribution shall be reduced by 1.0% of
that salary rate for every 3 full years of creditable service earned by the
member after June 30, 1998. The contribution shall be further reduced at
the rate of 25% of the contribution (as reduced for service after June 30,
1998) for each year of the member's total creditable service in excess of 34
years. The contribution shall not in any event exceed 20% of that salary
The member shall pay to the System the amount of the contribution as
calculated at the time of application under this Section. The amount of the
contribution determined under this subsection shall be recalculated at the time
of retirement, and if the System determines that the amount paid by the member
exceeds the recalculated amount, the System shall refund the difference to the
member with regular interest from the date of payment to the date of refund.
The contribution required by this subsection shall be paid in one of the
following ways or in a combination of the following ways that does not extend
over more than 5 years:
(i) in a lump sum on or before the date of retirement;
(ii) in substantially equal installments over a
(c) If the member fails to make the full contribution under this Section
in a timely fashion, the payments made under this Section shall be refunded
to the member, without interest. If the member dies before making the full
contribution, the payments made under this Section, together with regular
interest thereon, shall be refunded to the member's designated beneficiary
for benefits under Section 16-138.
(d) For purposes of this Section and subdivision (a)(B)(1) of Section
16-133, optional creditable service established by a member shall be deemed to
have been earned at the time of the employment or other qualifying event upon
which the service is based, rather than at the time the credit was established
in this System.
(e) The contributions required under this Section are the responsibility of
the teacher and not the teacher's employer. However, an employer of teachers
may, after the effective date of this amendatory Act of 1998, specifically
agree, through collective bargaining or otherwise, to make the contributions
required by this Section on behalf of those teachers.
(f) A person who, on or after July 1, 1998 and before June 4, 1999, began
receiving a retirement annuity calculated at the augmented rate may apply in
writing to have the annuity recalculated to reflect the changes to this Section
and Section 16-133 that were enacted in Public Act 91-17. The amount of any
resulting decrease in the optional contribution shall be refunded to the
annuitant, without interest. Any resulting increase in retirement annuity
shall take effect on the next annuity payment date following the date of
application under this subsection.
(Source: P.A. 92-416, eff. 8-17-01; 93-469, eff. 8-8-03.)