[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB0355 40 ILCS 5/17-116 from Ch. 108 1/2, par. 17-116 30 ILCS 805/8.21 new Amends the Chicago Teacher Article of the Pension Code to eliminate the age discount for persons with at least 30 years of service who retire before age 60. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB9000577EGfg LRB9000577EGfg 1 AN ACT to amend the Illinois Pension Code by changing 2 Section 17-116 and to amend the State Mandates Act. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Section 17-116 as follows: 7 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116) 8 Sec. 17-116. Service retirement pension. Each teacher 9 having 20 years of service upon attainment of age 55, or who 10 thereafter attains age 55 shall be entitled to a service 11 retirement pension upon or after attainment of age 55; and 12 each teacher in service on or after July 1, 1971, with 5 or 13 more but less than 20 years of service shall be entitled to 14 receive a service retirement pension upon or after attainment 15 of age 62. Such pension is to be calculated as follows: 16 Beginning
as ofJune 25, 1971, the service retirement 17 pension for a teacher who retires on or after that suchdate, 18 at age 60 or over, shall be 1.67% for each of the first 10 19 years of service; 1.90% for each of the next 10 years of 20 service; 2.10% for each year of service in excess of 20 but 21 not exceeding 30; and 2.30% for each year of service in 22 excess of 30, based upon average salary as herein defined. 23 When computing suchservice retirement pensions, the 24 following conditions shall apply: 25 1. Average salary shall consist of the average annual 26 rate of salary for the 4 consecutive years of validated 27 service within the last 10 years of service when such average 28 annual rate was highest. In the determination of average 29 salary for retirement allowance purposes, for members who 30 commenced employment after August 31, 1979, that part of the 31 salary for any year shall be excluded which exceeds the -2- LRB9000577EGfg 1 annual full-time salary rate for the preceding year by more 2 than 20%. In the case of a member who commenced employment 3 before August 31, 1979 and who receives salary during any 4 year after September 1, 1983 which exceeds the annual full 5 time salary rate for the preceding year by more than 20%, the 6 Board of Education or employer shall pay to the Fund an 7 amount equal to the present value of the additional service 8 retirement pension resulting from such excess salary. The 9 present value of the additional service retirement pension 10 shall be computed by the Board on the basis of actuarial 11 tables adopted by the Board. If a member elects to receive a 12 pension from this fund provided by Section 20-121, his salary 13 under the State Universities Retirement System and the 14 Teachers' Retirement System of the State of Illinois shall be 15 considered in determining such average salary. Amounts paid 16 after the effective date of this amendatory Act of 1991 for 17 unused vacation time earned after that effective date shall 18 not under any circumstances be included in the calculation of 19 average salary or the annual rate of salary for the purposes 20 of this Article. 21 2. Proportionate credit shall be given for validated 22 service of less than one year. 23 3. For retirement at age 60 or over the pension shall be 24 payable at the full rate. 25 4. For separation from service below age 60 to a minimum 26 age of 55, the pension shall be discounted at the rate of 27 0.5% 1/2 of one per centfor each month that the age of the 28 contributor is less than 60, but a teacher may elect to defer 29 the effective date of pension in order to eliminate or reduce 30 this discount. This discount shall not be applicable to any 31 participant who has at least 30 35years of service on the 32 date the retirement annuity begins. 33 5. No additional pension shall be granted for service 34 exceeding 45 years. Beginning June 26, 1971 no pension shall -3- LRB9000577EGfg 1 exceed the greater of $1,500 per month or 75% of average 2 salary as herein defined. 3 6. Service retirement pensions shall begin on the 4 effective date of resignation, retirement, the day following 5 the close of the payroll period for which service credit was 6 validated, or the time the person resigning or retiring 7 attains age 55, or on a date elected by the teacher, 8 whichever shall be latest. 9 (Source: P.A. 86-1488.) 10 Section 90. The State Mandates Act is amended by adding 11 Section 8.21 as follows: 12 (30 ILCS 805/8.21 new) 13 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 14 and 8 of this Act, no reimbursement by the State is required 15 for the implementation of any mandate created by this 16 amendatory Act of 1997. 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.
[ Top ]