State of Illinois
91st General Assembly
Legislation

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91_SB1380

 
                                               LRB9110063EGfg

 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections  17-116  and  17-122 and to amend the State Mandates
 3    Act.

 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:

 6        Section  5.  The  Illinois  Pension  Code  is  amended by
 7    changing Sections 17-116 and 17-122 as follows:

 8        (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
 9        Sec. 17-116. Service retirement pension.
10        (a)  Each  teacher  having  20  years  of  service   upon
11    attainment  of age 55, or who thereafter attains age 55 shall
12    be entitled to a service retirement  pension  upon  or  after
13    attainment of age 55; and each teacher in service on or after
14    July  1,  1971,  with  5  or  more  but less than 20 years of
15    service shall be entitled to  receive  a  service  retirement
16    pension upon or after attainment of age 62.
17        (b)  The  service  retirement  pension  for a teacher who
18    retires on or after June 25, 1971, at age 60 or  over,  shall
19    be calculated as follows:
20             (1)  For  creditable  service  earned before July 1,
21        1998 that has not been augmented under Section  17-119.1:
22        1.67%  for  each  of the first 10 years of service; 1.90%
23        for each of the next 10 years of service; 2.10% for  each
24        year of service in excess of 20 but not exceeding 30; and
25        2.30%  for  each  year  of service in excess of 30, based
26        upon average salary as herein defined.
27             (2)  For creditable service earned on or after  July
28        1,  1998  by  a  member  who  has  at  least  30 years of
29        creditable service on July 1, 1998 and who does not elect
30        to augment  service  under  Section  17-119.1:   2.3%  of
31        average salary for each year of creditable service earned
 
                            -2-                LRB9110063EGfg
 1        on or after July 1, 1998.
 2             (3)  For  all  other  creditable  service:   2.2% of
 3        average salary for each year of creditable service.
 4        (c)  When computing such service retirement pensions, the
 5    following conditions shall apply:
 6             1.  Average salary  shall  consist  of  the  average
 7        annual  rate  of salary for the 3 the 4 consecutive years
 8        of validated service within the last 10 years of  service
 9        when  such  average  annual  rate  was  highest.   In the
10        determination of average salary for retirement  allowance
11        purposes,  for  members  who  commenced  employment after
12        August 31, 1979, that part of the  salary  for  any  year
13        shall  be  excluded  which  exceeds  the annual full-time
14        salary rate for the preceding year by more than 20%.   In
15        the  case  of  a  member  who commenced employment before
16        August 31, 1979 and who receives salary during  any  year
17        after  September  1,  1983  which exceeds the annual full
18        time salary rate for the preceding year by more than 20%,
19        an Employer and other employers of eligible  contributors
20        as  defined  in  Section  17-106 shall pay to the Fund an
21        amount equal to  the  present  value  of  the  additional
22        service  retirement  pension  resulting  from such excess
23        salary.  The present  value  of  the  additional  service
24        retirement  pension shall be computed by the Board on the
25        basis of actuarial tables adopted by  the  Board.   If  a
26        member  elects  to  receive  a  pension  from  this  Fund
27        provided  by  Section  20-121, his salary under the State
28        Universities  Retirement   System   and   the   Teachers'
29        Retirement  System  of  the  State  of  Illinois shall be
30        considered in determining such average  salary.   Amounts
31        paid  after  the effective date of this amendatory Act of
32        1991 for unused vacation time earned after that effective
33        date shall not under any circumstances be included in the
34        calculation of average  salary  or  the  annual  rate  of
 
                            -3-                LRB9110063EGfg
 1        salary for the purposes of this Article.
 2             2.  Proportionate   credit   shall   be   given  for
 3        validated service of less than one year.
 4             3.  For retirement at age 60  or  over  the  pension
 5        shall be payable at the full rate.
 6             4.  For  separation  from  service below age 60 to a
 7        minimum age of 55, the pension shall be discounted at the
 8        rate of 0.5% 1/2 of one per cent for each month that  the
 9        age of the contributor is less than 60, but a teacher may
10        elect  to defer the effective date of pension in order to
11        eliminate or reduce this discount.  This  discount  shall
12        not  be applicable to any participant who has at least 34
13        years of service or a  retirement  pension  of  at  least
14        74.6%  of  average  salary  on  the  date  the retirement
15        annuity begins.
16             5.  No  additional  pension  shall  be  granted  for
17        service exceeding 45 years.  Beginning June 26, 1971,  no
18        pension  shall  exceed the greater of $1,500 per month or
19        75% of average salary as herein defined.
20             6.  Service retirement pensions shall begin  on  the
21        effective   date  of  resignation,  retirement,  the  day
22        following the close  of  the  payroll  period  for  which
23        service  credit  was  validated,  or  the time the person
24        resigning or retiring  attains  age  55,  or  on  a  date
25        elected by the teacher, whichever shall be latest.
26             7.  A member who is eligible to receive a retirement
27        pension  of  at  least  74.6%  of average salary and will
28        attain age 55 on or before December 31  during  the  year
29        which  commences  on July 1 shall be deemed to attain age
30        55 on the preceding June 1.
31             8.  A member retiring after the  effective  date  of
32        this amendatory Act of 1998 shall receive a pension equal
33        to  75%  of  average salary if the member is qualified to
34        receive a retirement pension equal to at least  74.6%  of
 
                            -4-                LRB9110063EGfg
 1        average  salary  under  this  Article  or as proportional
 2        annuities under Article 20 of this Code.
 3    (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)

 4        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
 5        Sec. 17-122. Survivor's and children's pensions - Amount.
 6    Upon the death of a teacher who has completed at least 1  1/2
 7    years  of  contributing  service with either this Fund or the
 8    State  Universities  Retirement  System  or   the   Teachers'
 9    Retirement  System  of  the  State  of Illinois, provided his
10    death occurred while (a) in active  service  covered  by  the
11    Fund  or  during his first 18 months of continuous employment
12    without a break in  service  under  any  other  participating
13    system   as   defined  in  the  Illinois  Retirement  Systems
14    Reciprocal  Act  except  the  State  Universities  Retirement
15    System and the Teachers' Retirement System of  the  State  of
16    Illinois,  (b)  on  a  creditable  leave of absence, (c) on a
17    noncreditable leave of absence of no more than one  year,  or
18    (d)  a  pension  was deferred or pending provided the teacher
19    had at least 10 years of validated service  credit,  or  upon
20    the  death  of  a  pensioner  otherwise  qualified  for  such
21    benefit, the surviving spouse and unmarried minor children of
22    the  deceased  teacher  under  age  18  shall  be entitled to
23    pensions, under  the  conditions  stated  hereinafter.   Such
24    Survivor's  and  children's  pensions  shall  be based on the
25    average of the 3 the 4 highest consecutive years of salary in
26    the last 10 years of service or on  the  average  salary  for
27    total  service,  if total service has been less than 3 than 4
28    years, according to the following percentages:
29        30% of average salary or 50% of  the  retirement  pension
30    earned  by  the  teacher, whichever is larger, subject to the
31    prescribed maximum monthly payment, for  a  surviving  spouse
32    alone on attainment of age 50;
33        60%   of  average  salary  for  a  surviving  spouse  and
 
                            -5-                LRB9110063EGfg
 1    eligible minor children of the deceased teacher.
 2        If no eligible spouse survives, or the  surviving  spouse
 3    remarries,  or  the  parent  of  the children of the deceased
 4    member is otherwise ineligible for a  survivor's  pension,  a
 5    children's  pension  for eligible minor children under age 18
 6    shall be paid to their parent or  legal  guardian  for  their
 7    benefit according to the following percentages:
 8        30% of average salary for one child;
 9        60% of average salary for 2 or more children.
10        On  January  1,  1981,  any  survivor  or  child  who was
11    receiving a survivor's or children's  pension  on  or  before
12    January  1,  1971,  shall  have  his survivor's or children's
13    pension then being paid increased by 1% for  each  full  year
14    which has elapsed from the date the pension began. On January
15    1,  1982,  any  survivor  or  child whose pension began after
16    January 1, 1971, but before January 1, 1981, shall  have  his
17    survivor's or children's pension then being paid increased 1%
18    for  each  full  year  which  has  elapsed  from the date the
19    pension began. On January 1,  1987,  any  survivor  or  child
20    whose  pension began on or before January 1, 1977, shall have
21    the monthly survivor's or children's pension increased by  $1
22    for each full year which has elapsed since the pension began.
23        Beginning   January   1,   1990,   every  survivor's  and
24    children's pension shall be increased (1) on each  January  1
25    occurring  on or after the commencement of the pension if the
26    deceased teacher died while receiving a  retirement  pension,
27    or  (2)  in  other  cases,  on each January 1 occurring on or
28    after the  first  anniversary  of  the  commencement  of  the
29    pension,  by  an  amount equal to 3% of the current amount of
30    the pension, including all increases previously granted under
31    this Article, notwithstanding Section 17-157.  Such increases
32    shall apply without regard to whether  the  deceased  teacher
33    was  in  service  on  or  after  the  effective  date of this
34    amendatory Act of 1991, but shall not accrue for  any  period
 
                            -6-                LRB9110063EGfg
 1    prior to January 1, 1990.
 2        Subject  to  the  minimum  established below, the maximum
 3    amount of pension for a surviving spouse alone or  one  minor
 4    child  shall  be  $400  per  month,  and the maximum combined
 5    pensions for a surviving spouse and children of the  deceased
 6    teacher  shall  be  $600  per month, with individual pensions
 7    adjusted for all beneficiaries pro rata to conform with  this
 8    limitation.    If   proration   is  unnecessary  the  minimum
 9    survivor's and children's pensions shall be  $40  per  month.
10    The  minimum  total survivor's and children's pension payable
11    upon the death of a contributor  or  annuitant  which  occurs
12    after   December  31,  1986,  shall  be  50%  of  the  earned
13    retirement  pension  of  such   contributor   or   annuitant,
14    calculated  without  early retirement discount in the case of
15    death in service.
16        On death  after  retirement,  the  total  survivor's  and
17    children's  pensions  shall not exceed the monthly retirement
18    or  disability  pension  paid  to  the   deceased   retirant.
19    Survivor's  and children's benefits described in this Section
20    shall apply to all service and disability pensioners eligible
21    for a pension as of July 1, 1981.
22    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

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

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

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

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