(b) An eligible person may establish up to 5 years of creditable service
under this Section. In addition, for each period of creditable service
established under this Section, a person shall have his or her age at
retirement deemed enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average salary, the determination of
salary or compensation under this or any other Article of the Code, or the
determination of eligibility for and the computation of benefits under
Section 16-133.2 of this Article.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
annuity payable by this System under the Retirement Systems Reciprocal
Act), except for purposes of a reversionary annuity under Section 16-136,
the retirement annuity under Section 16-133(a)(A), the required
distributions under Section 16-142.3, and the determination of eligibility
for and the computation of benefits under Section 16-133.2 of this Article.
However, age enhancement established under this Section shall not be used
in determining benefits payable under other Articles of this Code under the
Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section by an
employee of an employer that is not a State agency, the employer must pay
to the System an employer contribution consisting of 20% of the member's
highest annual salary rate used in the determination of the average salary
for retirement annuity purposes for each year of creditable service granted
under this Section. No employer contribution is required under this
Section from any employer that is a State agency.
The employer contribution shall be paid to the System in one of the
following ways: (i) in a single sum at the time of the member's
retirement, (ii) in equal quarterly installments over a period of 5 years
from the date of retirement, or (iii) subject to the approval of the Board
of the System, in unequal installments over a period of no more than 5
years from the date of retirement, as provided in a payment plan designed
by the System to accommodate the needs of the employer. The employer's
failure to make the required contributions in a timely manner shall not
affect the payment of the retirement annuity.
For all creditable service established under this Section, the
employee must pay to the System an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement annuity for each year of creditable service granted under
this Section. The employee may elect either to pay the employee contribution in
full before the retirement annuity commences, or to have it deducted from the
retirement annuity in 24 monthly installments.
(d) An annuitant who has received any age enhancement or creditable
service under this Section and who re-enters contributing service under
this Article shall thereby forfeit the age enhancement and creditable service,
and upon re-retirement the annuity shall be recomputed. The forfeiture of
creditable service under this subsection shall not entitle the employer to a
refund of the employer contribution paid under this Section, nor to forgiveness
of any part of that contribution that remains unpaid. The forfeiture of
creditable service under this subsection shall not entitle the employee to a
refund of the employee contribution paid under this Section.
(e) If the number of employees of an employer that actually apply for
early retirement under this Section exceeds 30% of those eligible, the
employer may require that, for the number of applicants in excess of that
30%, the starting date of the retirement annuity enhanced under this
Section may not be earlier than June 1, 1994. The right to have the
retirement annuity begin before that date shall be allocated among the
applicants on the basis of seniority in the service of that employer.
This delay applies only to persons who are applying for early
retirement incentives under this Section, and does not prevent a person
whose application for early retirement incentives has been withdrawn from
receiving a retirement annuity on the earliest date upon which
the person is otherwise eligible under this Article.
(f) For a member who is notified after February 15, 1993, but before
September 15, 1993, that he or she will be laid off in the 1993-1994 school
year: (1) the March 1 application deadline in subdivision (a)(3) of this
Section is extended to a date 15 days after the date of issuance of the
layoff notice, and (2) the member shall not be included in the calculation
of the 30% under subsection (e) and is not subject to delay in retirement
under that subsection.
(g) A member who receives any early retirement incentive under Section
16-133.5 may not receive any early retirement incentive under
(Source: P.A. 87-1265.)