(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's age at retirement shall
be deemed to be increased by an equal 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 purposes of Section 17-116.1, and the determination of
average salary or compensation under this or any other Article of this Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
pension payable by this Fund under the Retirement Systems Reciprocal
Act), except for purposes of the reversionary pension under
Section 17-120, and distributions required by federal law on
account of age. 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, the
employer must pay to the Fund an employer contribution consisting of
12% of the member's highest annual full-time rate of compensation for each
year of creditable service granted under this Section.
The employer contribution shall be paid to the Fund 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 Fund, 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 Fund 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 pension.
For all creditable service established under this Section, the
employee must pay to the Fund an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement pension for each year of creditable service granted under
this Section. The employee contribution shall be 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 whose pension is suspended or cancelled
under Section 17-149 or 17-150 shall thereby forfeit the age enhancement
and creditable service. 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 apply for early
retirement under this Section exceeds 30% of those eligible, the employer may
require that, for any or all of the number of applicants in excess of that 30%,
the starting date of the retirement pension enhanced under this Section be no
earlier than June 1, 1995 and no later than
September 1, 1995. The right to have the retirement pension begin before
June 1, 1995 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
beginning to receive a retirement pension on the earliest date upon which
the person is otherwise eligible under this Article.
(f) For a member who receives notice that he or she has been declared a
reserve teacher pursuant to a collective
bargaining agreement after February 15, 1994, but before
September 15, 1994:
(1) the March 1, 1994 application deadline in subdivision (a)(4) of
this Section is extended to a date 15 days after the date of notification
of the reserve teacher declaration, (2) the September 1, 1994 deadline in
subdivision (a)(5) of
this Section is extended to October 1, 1994, and (3) 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
17-116.3, 17-116.4, or 17-116.6 may not receive any early retirement incentive
(Source: P.A. 88-511.)