State of Illinois
91st General Assembly
Legislation

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91_HB3448

 
                                               LRB9110058EGfg

 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 17-119 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 17-119 as follows:

 7        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
 8        Sec. 17-119.  Automatic annual increase in pension.
 9        (a)  Each teacher retiring on or after September 1, 1959,
10    is  entitled  to  the  annual  increase  in  pension, defined
11    herein, while he is receiving a pension from the Fund.
12             1.  The  term  "base  pension"   means   a   service
13        retirement or disability retirement pension in the amount
14        fixed and payable at the date of retirement of a teacher.
15             2.  The  annual  increase in pension shall be at the
16        rate of 1 1/2% of base pension. This increase shall first
17        occur in January of the year  next  following  the  first
18        anniversary  of  retirement.  At such time the Fund shall
19        pay the pro rata part of the increase for the period from
20        the first anniversary date  to  the  date  of  the  first
21        increase in pension.  Beginning January 1, 1972, the rate
22        of  annual  increase  in  pension shall be 2% of the base
23        pension.  Beginning January 1, 1979, the rate  of  annual
24        increase  in  pension  shall  be  3% of the base pension.
25        Beginning January 1, 1990, all automatic annual increases
26        payable under this  Section  shall  be  calculated  as  a
27        percentage  of  the  total pension payable at the time of
28        the increase, including all increases previously  granted
29        under this Article, notwithstanding Section 17-157.
30             3.  An  increase in pension shall be granted only if
31        the retired teacher is age 60 or over.   If  the  teacher
 
                            -2-                LRB9110058EGfg
 1        attains  age 60 after retirement, the increase in pension
 2        shall begin in January of the  year  following  the  61st
 3        birthday.   At  such time the Fund also shall pay the pro
 4        rata  part  of  the  increase  from  the  later  of   (i)
 5        attainment  of age 55 or (ii) the date of retirement 61st
 6        birthday to the date of first increase in pension.
 7        (b)  In addition to other increases which may be provided
 8    by this Section, on January  1,  1981  any  teacher  who  was
 9    receiving  a  retirement pension on or before January 1, 1971
10    shall have his retirement pension then being  paid  increased
11    $1 per month for each year of creditable service.  On January
12    1,  1982,  any  teacher  whose retirement pension began on or
13    before January 1, 1977, shall  have  his  retirement  pension
14    then  being  paid  increased  $1  per  month for each year of
15    creditable service.
16        On January 1, 1987, any teacher whose retirement  pension
17    began  on  or  before January 1, 1977, shall have the monthly
18    retirement pension increased by an amount  equal  to  8¢  per
19    year  of  creditable  service  times the number of years that
20    have elapsed since the retirement pension began.
21    (Source: P.A. 90-566, eff. 1-2-98.)

22        Section 90.  The State Mandates Act is amended by  adding
23    Section 8.24 as follows:

24        (30 ILCS 805/8.24 new)
25        Sec.  8.24.  Exempt  mandate.  Notwithstanding Sections 6
26    and 8 of this Act, no reimbursement by the State is  required
27    for  the  implementation  of  any  mandate  created  by  this
28    amendatory Act of the 91st General Assembly.

29        Section  99.  Effective date.  This Act takes effect upon
30    becoming law.

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