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90_SB0288 40 ILCS 5/15-136.4 new Amends the Pension Code to provide early retirement incentives for members of the State Universities Retirement System. Applies to certain persons applying for retirement following the school years ending in 1998 and 1999. Grants up to 5 years of additional creditable service and up to 5 years of age enhancement. Requires an employer contribution and an employee contribution. Effective immediately. LRB9000553EGfg LRB9000553EGfg 1 AN ACT to amend the Illinois Pension Code by adding 2 Section 15-136.4. 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 adding 6 Section 15-136.4 as follows: 7 (40 ILCS 5/15-136.4 new) 8 Sec. 15-136.4. Early retirement incentives. 9 (a) To be eligible for the benefits provided in this 10 Section, a person must: 11 (1) be a member of this System who, on or after 12 November 1, 1997, is (i) in active payroll status in a 13 position of employment with an employer under this 14 Article, or (ii) on layoff status from such a position 15 with a right of re-employment or recall to service, or 16 (iii) on leave of absence from such a position, but only 17 if the member on leave has not been receiving a 18 disability benefit under this Article for a continuous 19 period of 2 years or more as of the date of application; 20 (2) have not retired under this Article; 21 (3) file with the Board before March 1, 1998 a 22 written application requesting the benefits provided in 23 this Section; 24 (4) establish eligibility to receive a retirement 25 annuity under this Article (for which purpose any age 26 enhancement or creditable service received under this 27 Section may be used) and elect to receive the retirement 28 annuity beginning not earlier than June 1, 1998 and not 29 later than September 1, 1999; 30 (5) have attained age 50 or accumulated 30 or more 31 years of creditable service (without the use of any age -2- LRB9000553EGfg 1 enhancement or creditable service received under this 2 Section) by the effective date of the retirement annuity. 3 (b) An eligible person may establish up to 5 years of 4 creditable service under this Article, in increments of one 5 month, by making the contributions specified in subsection 6 (c). In addition, for each month of creditable service 7 established under this Section, a person's age at retirement 8 shall be deemed to be one month older than it actually is. 9 The creditable service established under this Section may 10 be used for all purposes under this Article and the 11 Retirement Systems Reciprocal Act, except for the purposes of 12 Section 15-136.2, the computation of final rate of earnings 13 under Section 15-112, or the determination of earnings or 14 compensation under this or any other Article of this Code. 15 The age enhancement established under this Section may be 16 used for all purposes under this Article (including 17 calculation of a proportionate annuity payable by this System 18 under the Retirement Systems Reciprocal Act), except for the 19 purposes of Section 15-136.2, the earning limitation under 20 Section 15-139(b), the reversionary annuity under Section 21 15-140, and distributions required by federal law on account 22 of age. However, age enhancement established under this 23 Section shall not be used in determining benefits payable 24 under other Articles of this Code under the Retirement 25 Systems Reciprocal Act. 26 (c) For each year of creditable service established 27 under this Section, the employee must pay to the System an 28 employee contribution consisting of 4% of the highest annual 29 rate of earnings used in the determination of the member's 30 final rate of earnings. The employee may elect to pay the 31 contribution in a single sum at the time of retirement or or 32 to have the contribution deducted from his or her retirement 33 annuity in 24 equal monthly installments. 34 For each year of creditable service established under -3- LRB9000553EGfg 1 this Section, the employer must pay to the System an employer 2 contribution consisting of 9% of the highest annual rate of 3 earnings used in the determination of the member's final rate 4 of earnings. The employer contribution may be paid to the 5 System in a single sum at the time of the member's retirement 6 or in installments over a period not exceeding 5 years from 7 the date of retirement. The employer's failure to make the 8 required contribution in a timely manner does not affect the 9 payment of the retirement annuity. 10 (d) Notwithstanding Section 15-139, an annuitant who has 11 received any age enhancement or creditable service under this 12 Section and who reenters service under this Article and 13 exceeds the earnings limitation under Section 15-139, shall 14 thereby forfeit such age enhancement and creditable service 15 and become entitled to a refund of the employee contributions 16 made under this Section. 17 (e) If the number of employees of an employer that apply 18 for early retirement under this Section in 1998 exceeds 15% 19 of those eligible, the employer may require that, for the 20 number of applicants in excess of that 15%, the starting date 21 of the retirement annuity enhanced under this Section may not 22 be earlier than June 1, 1999. The right to have the 23 retirement annuity begin before that date shall be allocated 24 among the applicants on the basis of seniority in the service 25 of that employer. 26 This delay applies only to persons who are applying for 27 early retirement incentives under this Section, and does not 28 prevent a person whose application for early retirement 29 incentives has been withdrawn from receiving a retirement 30 annuity on the earliest date upon which the person is 31 otherwise eligible under this Article. 32 Section 99. Effective date. This Act takes effect upon 33 becoming law.
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