State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]



90_SB0274

      40 ILCS 5/17-116.3
      30 ILCS 805/8.21 new
          Amends the Chicago Teacher Article of the Pension Code to
      grant additional benefits  to  persons  who  began  receiving
      early  retirement  benefits  in 1993.  Requires no additional
      contribution.  Amends  the  State  Mandates  Act  to  require
      implementation without reimbursement.  Effective immediately.
                                                     LRB9000481EGfg
                                               LRB9000481EGfg
 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Section 17-116.3 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 17-116.3 as follows:
 7        (40 ILCS 5/17-116.3)
 8        Sec. 17-116.3. Early retirement incentives.
 9        (a)  A teacher who is covered by a collective  bargaining
10    agreement  shall  not  be  eligible  for the early retirement
11    incentives provided under this Section unless the  collective
12    bargaining agent and the Board of Education have entered into
13    an  agreement  under  which the agent agrees that any payment
14    for accumulated unused sick days to  which  the  employee  is
15    entitled  upon  withdrawal  from  service  may be paid by the
16    Board of Education in installments over a period of up  to  5
17    years,  and  a copy of this agreement has been filed with the
18    Board of the Fund.
19        To be eligible for the benefits provided in this Section,
20    a person must:
21             (1)  be a member of this Fund who, on or  after  May
22        1, 1993, is (i) in active payroll status as a teacher, or
23        (ii)  on  layoff status from such a position with a right
24        of re-employment or recall to service, or (iii) on  leave
25        of  absence  from such a position, but only if the member
26        on leave has not  been  receiving  a  disability  benefit
27        under  this Article for a continuous period of 2 years or
28        more as of the date of application;
29             (2)  have  not  previously  received  a   retirement
30        pension under this Article;
31             (3)  file with the Board and the Board of Education,
                            -2-                LRB9000481EGfg
 1        before  August 15, 1993, a written application requesting
 2        the benefits provided in this Section  and  a  notice  of
 3        resignation  from employment, which resignation must take
 4        effect before September 1, 1993  unless  the  applicant's
 5        retirement is delayed under subsection (e), (f), or (f-5)
 6        of this Section;
 7             (4)  be  eligible  to  receive  a retirement pension
 8        under this Article (for which purpose any age enhancement
 9        or creditable service received under this Section may  be
10        used)   and  elect  to  receive  the  retirement  pension
11        beginning no earlier than June 1, 1993 and no later  than
12        September   1,   1993   or  the  date  established  under
13        subsection  (e),  (f),  or  (f-5)  of  this  Section,  if
14        applicable;
15             (5)  have attained age 50 (without the  use  of  any
16        age enhancement or creditable service received under this
17        Section) by the effective date of the retirement pension;
18             (6)  have  at  least  5  years of creditable service
19        under this Fund or any of the participating systems under
20        the Retirement Systems Reciprocal Act (without the use of
21        any creditable service received under  this  Section)  by
22        the effective date of the retirement pension.
23        (b)  An  eligible  person  may establish up to 5 years of
24    creditable service under this Section.  In addition, for each
25    period of creditable service established under this  Section,
26    a  person's age at retirement shall be deemed to be increased
27    by an equal period.
28        The creditable service established under this Section may
29    be  used  for  all  purposes  under  this  Article  and   the
30    Retirement Systems Reciprocal Act, except for the purposes of
31    Section  17-116.1, and the determination of average salary or
32    compensation under this or any other Article of this Code.
33        The age enhancement established under this Section may be
34    used  for  all  purposes  under   this   Article   (including
                            -3-                LRB9000481EGfg
 1    calculation  of  a proportionate pension payable by this Fund
 2    under the Retirement  Systems  Reciprocal  Act),  except  for
 3    purposes  of  the  reversionary pension under Section 17-120,
 4    and distributions required by federal law on account of  age.
 5    However, age enhancement established under this Section shall
 6    not  be  used  in  determining  benefits  payable under other
 7    Articles of this Code under the Retirement Systems Reciprocal
 8    Act.
 9        (c)  For all creditable service  established  under  this
10    Section,  the  employer  must  pay  to  the  Fund an employer
11    contribution consisting of 12% of the member's highest annual
12    full-time rate of compensation for each  year  of  creditable
13    service granted under this Section.
14        The  employer  contribution  shall be paid to the Fund in
15    one of the following ways:  (i) in a single sum at  the  time
16    of   the   member's   retirement,  (ii)  in  equal  quarterly
17    installments over a period  of  5  years  from  the  date  of
18    retirement,  or (iii) subject to the approval of the Board of
19    the Fund, in unequal installments over a period  of  no  more
20    than  5  years  from the date of retirement, as provided in a
21    payment plan designed by the Fund to accommodate the needs of
22    the employer.  The employer's failure to  make  the  required
23    contributions in a timely manner shall not affect the payment
24    of the retirement pension.
25        For   all   creditable  service  established  under  this
26    Section, the employee  must  pay  to  the  Fund  an  employee
27    contribution  consisting of 4% of the member's highest annual
28    salary rate used  in  the  determination  of  the  retirement
29    pension  for  each  year  of creditable service granted under
30    this Section.  The employee contribution  shall  be  deducted
31    from the retirement annuity in 24 monthly installments.
32        (d)  An annuitant who has received any age enhancement or
33    creditable  service  under  this Section and whose pension is
34    suspended or cancelled under Section 17-149 or  17-150  shall
                            -4-                LRB9000481EGfg
 1    thereby  forfeit  the age enhancement and creditable service.
 2    The forfeiture of creditable service  under  this  subsection
 3    shall  not  entitle  the employer to a refund of the employer
 4    contribution paid under this Section, nor to  forgiveness  of
 5    any  part  of  that  contribution  that  remains  unpaid. The
 6    forfeiture of creditable service under this subsection  shall
 7    not  entitle  the  employee  to  a  refund  of  the  employee
 8    contribution paid under this Section.
 9        (e)  If the number of employees of an employer that apply
10    for  early retirement under this Section exceeds 30% of those
11    eligible, the employer may require that, for any  or  all  of
12    the  number of applicants in excess of that 30%, the starting
13    date of the retirement pension enhanced under this Section be
14    no earlier than June 1, 1994 and no later than  September  1,
15    1994.   The right to have the retirement pension begin before
16    June 1, 1994 shall be allocated among the applicants  on  the
17    basis of seniority in the service of that employer.
18        This  delay  applies only to persons who are applying for
19    early retirement incentives under this Section, and does  not
20    prevent  a  person  whose  application  for  early retirement
21    incentives has been withdrawn from  beginning  to  receive  a
22    retirement pension on the earliest date upon which the person
23    is otherwise eligible under this Article.
24        (f)  For  a  member  who is notified after July 30, 1993,
25    but before November 29, 1993, that he or she  will  become  a
26    supernumerary  or  reserve  teacher  in  the 1993-1994 school
27    year:  (1)  the  August  15,  1993  application  deadline  in
28    subdivision (a)(3) of this Section is  extended  to  December
29    14,  1993,  (2) the September 1, 1993 deadline in subdivision
30    (a)(4) of this Section is extended to December 14, 1993,  and
31    (3)  the  member  shall not be included in the calculation of
32    the 30% under subsection (e) and is not subject to  delay  in
33    retirement under that subsection.
34        (f-5)  For  a  member  who  is  notified after January 1,
                            -5-                LRB9000481EGfg
 1    1994, but before March 1, 1994, that he or she will become  a
 2    reserve  teacher in the 1993-1994 school year: (1) the August
 3    15, 1993 application deadline in subdivision (a)(3)  of  this
 4    Section  is  extended  to April 1, 1994; (2) the September 1,
 5    1993 deadline  in  subdivision  (a)(4)  of  this  Section  is
 6    extended  to  April  1, 1994; and (3) the member shall not be
 7    included in the calculation of the 30% under  subsection  (e)
 8    and  is  not  subject  to  delay  in  retirement  under  that
 9    subsection.
10        (g)  A member who receives any early retirement incentive
11    under  Section 17-116.4, 17-116.5 or 17-116.6 may not receive
12    any early retirement incentive under this Section.
13        (h)  The version of this Section included in  Public  Act
14    88-85  is  intended  to and shall control over the version of
15    this Section included in Public  Act  88-89,  notwithstanding
16    Section 6 of the Statute on Statutes.  All persons qualifying
17    for  early  retirement incentives under this Section shall be
18    subject to the limitations and restrictions provided  in  the
19    version  of  this  Section  included  in Public Act 88-85, as
20    amended by Public Act 88-511.
21        (i)  In addition to the benefits provided under the other
22    provisions of this Section, every person who  receives  early
23    retirement  benefits  under  this  Section is entitled to one
24    additional year of creditable  service  and  a  corresponding
25    year  of  additional age enhancement, for which no additional
26    contribution is required.  Every person  who  receives  early
27    retirement  benefits  under  this  Section  whose  retirement
28    annuity  has been calculated on the basis of a 4-year average
29    salary is also entitled to have the annuity  recalculated  on
30    the basis of the average salary for the 3 highest consecutive
31    years within the last 10 years of service.
32        The  additional  benefits provided by this subsection (i)
33    apply retroactively to the date the retirement annuity began.
34    The  Fund  shall   recalculate   all   annuities   originally
                            -6-                LRB9000481EGfg
 1    calculated  under  this  Section  to  reflect  the additional
 2    benefits provided under this subsection and shall pay to  the
 3    annuitant  in  a  lump sum the difference between the annuity
 4    payments paid before the date of the  recalculation  and  the
 5    recalculated amount of those payments.
 6    (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.)
 7        Section  10.  The State Mandates Act is amended by adding
 8    Section 8.21 as follows:
 9        (30 ILCS 805/8.21 new)
10        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
11    and  8 of this Act, no reimbursement by the State is required
12    for  the  implementation  of  any  mandate  created  by  this
13    amendatory Act of 1997.
14        Section 99. Effective date.  This Act takes  effect  upon
15    becoming law.

[ Top ]