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91_SB1381
LRB9110073EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 17-119.1 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 17-119.1 as follows:
7 (40 ILCS 5/17-119.1)
8 Sec. 17-119.1. Optional increase in retirement annuity.
9 (a) A member of the Fund may qualify for the augmented
10 rate under subdivision (b)(3) of Section 17-116 for all years
11 of creditable service earned before July 1, 1998 by making
12 the optional contribution specified in subsection (b); except
13 that a member with at least 30 years of creditable service at
14 retirement qualifies for the augmented rate without making
15 any contribution under subsection (b). A member may not
16 elect to qualify for the augmented rate for only a portion of
17 his or her creditable service earned before July 1, 1998.
18 (b) The contribution shall be an amount equal to 1.0% of
19 the member's highest salary rate in the 4 consecutive school
20 years immediately prior to but not including the school year
21 in which the application occurs, multiplied by the number of
22 years of creditable service earned by the member before July
23 1, 1998 or 20, whichever is less. This contribution shall be
24 reduced by 1.0% of that salary rate for every 3 full years of
25 creditable service earned by the member after June 30, 1998.
26 The contribution shall be further reduced at the rate of 25%
27 of the contribution (as reduced for service after June 30,
28 1998) for each year of the member's total creditable service
29 in excess of 34 years. The contribution shall not in any
30 event exceed 20% of that salary rate.
31 The member shall pay to the Fund the amount of the
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1 contribution as calculated at the time of application under
2 this Section. The amount of the contribution determined
3 under this subsection shall be recalculated at the time of
4 retirement, and if the Fund determines that the amount paid
5 by the member exceeds the recalculated amount, the Fund shall
6 refund the difference to the member with regular interest
7 from the date of payment to the date of refund.
8 The contribution required by this subsection shall be
9 paid in one of the following ways or in a combination of the
10 following ways that does not extend over more than 5 years:
11 (i) in a lump sum on or before the date of
12 retirement;
13 (ii) in substantially equal installments over a
14 period of time not to exceed 5 years, as a deduction from
15 salary in accordance with Section 17-130.2;
16 (iii) if the member becomes an annuitant before
17 June 30, 2003, in substantially equal monthly
18 installments over a 24-month period, by a deduction from
19 the annuitant's monthly benefit.
20 (c) If the member fails to make the full contribution
21 under this Section in a timely fashion, the payments made
22 under this Section shall be refunded to the member, without
23 interest. If the member dies before making the full
24 contribution, the payments made under this Section shall be
25 refunded to the member's designated beneficiary.
26 (d) For purposes of this Section and subsection (b) of
27 Section 17-116, optional creditable service established by a
28 member shall be deemed to have been earned at the time of the
29 employment or other qualifying event upon which the service
30 is based, rather than at the time the credit was established
31 in this Fund.
32 (e) The contributions required under this Section are
33 the responsibility of the teacher and not the teacher's
34 employer. However, an employer of teachers may, after the
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1 effective date of this amendatory Act of 1998, specifically
2 agree, through collective bargaining or otherwise, to make
3 the contributions required by this Section on behalf of those
4 teachers.
5 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
6 Section 90. The State Mandates Act is amended by adding
7 Section 8.24 as follows:
8 (30 ILCS 805/8.24 new)
9 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
10 and 8 of this Act, no reimbursement by the State is required
11 for the implementation of any mandate created by this
12 amendatory Act of the 91st General Assembly.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.