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90_SB0635 40 ILCS 5/17-116.7 new 30 ILCS 805/8.21 new Amends the Chicago Teacher Article of the Pension Code to extend the early retirement program for persons who retire at the end of the 1996-1997 school year. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB9000482EGfg LRB9000482EGfg 1 AN ACT to amend the Illinois Pension Code by adding 2 Section 17-116.7 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 adding 6 Section 17-116.7 as follows: 7 (40 ILCS 5/17-116.7 new) 8 Sec. 17-116.7. 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, 1997, 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- LRB9000482EGfg 1 before June 1, 1997, a written application requesting the 2 benefits provided in this Section and a notice of 3 resignation from employment, which resignation must take 4 effect no earlier than June 1, 1997 and no later than 5 September 1, 1997 unless the applicant's retirement is 6 delayed under subsection (e) 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, 1997 and no later than 12 September 1, 1997 or the date established under 13 subsection (e) of this Section, if applicable; 14 (5) have attained age 50 (without the use of any 15 age enhancement or creditable service received under this 16 Section) after September 1, 1996 and no later than 17 September 1, 1997; 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- LRB9000482EGfg 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- LRB9000482EGfg 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, 1998 and no later than September 1, 15 1998. The right to have the retirement pension begin before 16 June 1, 1998 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) A member who receives any early retirement incentive 25 under Section 17-116.3, 17-116.4, 17-116.5, or 17-116.6 may 26 not receive any early retirement incentive under this 27 Section. 28 Section 10. The State Mandates Act is amended by adding 29 Section 8.21 as follows: 30 (30 ILCS 805/8.21 new) 31 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 32 and 8 of this Act, no reimbursement by the State is required -5- LRB9000482EGfg 1 for the implementation of any mandate created by this 2 amendatory Act of 1997. 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.
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