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91_SB1703 LRB9111559EGfg 1 AN ACT to amend the Illinois Pension Code. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Sections 16-132 and 16-133 as follows: 6 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132) 7 Sec. 16-132. Retirement annuity eligibility. A member 8 who has at least 34 years of creditable service is entitled 9 to a retirement annuity at any age. A member who has at 10 least 20 years of creditable service is entitled to a 11 retirement annuity upon or after attainment of age 55. A 12 member who has at least 10 but less than 20 years of 13 creditable service is entitled to a retirement annuity upon 14 or after attainment of age 60. A member who has at least 5 15 but less than 10 years of creditable service is entitled to a 16 retirement annuity upon or after attainment of age 62. A 17 member who is eligible to receive a retirement annuity of at 18 least 74.6% of final average salary and will attain age 55 on 19 or before December 31 during the year which commences on July 20 1 shall be deemed to attain age 55 on the preceding June 1. 21 A member meeting the above eligibility conditions is 22 entitled to a retirement annuity upon written application to 23 the board setting forth the date the member wishes the 24 retirement annuity to commence. However, the effective date 25 of the retirement annuity shall be no earlier than the day 26 following the last day of creditable service, regardless of 27 the date of official termination of employment. To be 28 eligible for a retirement annuity, a member shall not be 29 employed as a teacher in the schools included under this 30 System or under Article 17, unless the member is disabled (in 31 which event, eligibility for salary must cease), or unless -2- LRB9111559EGfg 1 the System is required by federal law to commence payment due 2 to the member's age; the changes to this sentence made by 3 this amendatory Act of 1991 shall apply without regard to 4 whether the member terminated employment before or after its 5 effective date. 6 (Source: P.A. 90-582, eff. 5-27-98.) 7 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133) 8 Sec. 16-133. Retirement annuity; amount. 9 (a) The amount of the retirement annuity shall be the 10 larger of the amounts determined under paragraphs (A) and (B) 11 below: 12 (A) An amount consisting of the sum of the 13 following: 14 (1) An amount that can be provided on an 15 actuarially equivalent basis by the member's 16 accumulated contributions at the time of retirement; 17 and 18 (2) The sum of (i) the amount that can be 19 provided on an actuarially equivalent basis by the 20 member's accumulated contributions representing 21 service prior to July 1, 1947, and (ii) the amount 22 that can be provided on an actuarially equivalent 23 basis by the amount obtained by multiplying 1.4 24 times the member's accumulated contributions 25 covering service subsequent to June 30, 1947; and 26 (3) If there is prior service, 2 times the 27 amount that would have been determined under 28 subparagraph (2) of paragraph (A) above on account 29 of contributions which would have been made during 30 the period of prior service creditable to the member 31 had the System been in operation and had the member 32 made contributions at the contribution rate in 33 effect prior to July 1, 1947. -3- LRB9111559EGfg 1 (B) An amount consisting of the greater of the 2 following: 3 (1) For creditable service earned before July 4 1, 1998 that has not been augmented under Section 5 16-129.1: 1.67% of final average salary for each of 6 the first 10 years of creditable service, 1.90% of 7 final average salary for each year in excess of 10 8 but not exceeding 20, 2.10% of final average salary 9 for each year in excess of 20 but not exceeding 30, 10 and 2.30% of final average salary for each year in 11 excess of 30; and 12 For creditable service earned on or after July 13 1, 1998 by a member who has at least 24 years of 14 creditable service on July 1, 1998 and who does not 15 elect to augment service under Section 16-129.1: 16 2.2% of final average salary for each year of 17 creditable service earned on or after July 1, 1998 18 but before the member reaches a total of 30 years of 19 creditable service and 2.3% of final average salary 20 for each year of creditable service earned on or 21 after July 1, 1998 and after the member reaches a 22 total of 30 years of creditable service; and 23 For all other creditable service: 2.2% of 24 final average salary for each year of creditable 25 service; or 26 (2) 1.5% of final average salary for each year 27 of creditable service plus the sum $7.50 for each of 28 the first 20 years of creditable service. 29 The amount of the retirement annuity determined under 30 this paragraph (B) shall be reduced by 1/2 of 1% for each 31 month that the member is less than age 60 at the time the 32 retirement annuity begins. However, this reduction shall 33 not apply (i) if the member has at least 34
35years of 34 creditable service, or (ii) if the member retires on -4- LRB9111559EGfg 1 account of disability under Section 16-149.2 of this 2 Article with at least 20 years of creditable service. 3 (b) For purposes of this Section, final average salary 4 shall be the average salary for the highest 4 consecutive 5 years within the last 10 years of creditable service as 6 determined under rules of the board. The minimum final 7 average salary shall be considered to be $2,400 per year. 8 In the determination of final average salary for members 9 other than elected officials and their appointees when such 10 appointees are allowed by statute, that part of a member's 11 salary for any year beginning after June 30, 1979 which 12 exceeds the member's annual full-time salary rate with the 13 same employer for the preceding year by more than 20% shall 14 be excluded. 15 (c) In determining the amount of the retirement annuity 16 under paragraph (B) of this Section, a fractional year shall 17 be granted proportional credit. 18 (d) The retirement annuity determined under paragraph 19 (B) of this Section shall be available only to members who 20 render teaching service after July 1, 1947 for which member 21 contributions are required, and to annuitants who re-enter 22 under the provisions of Section 16-150. 23 (e) The maximum retirement annuity provided under 24 paragraph (B) of this Section shall be 75% of final average 25 salary. 26 (f) A member retiring after the effective date of this 27 amendatory Act of 1998 shall receive a pension equal to 75% 28 of final average salary if the member is qualified to receive 29 a retirement annuity equal to at least 74.6% of final average 30 salary under this Article or as proportional annuities under 31 Article 20 of this Code. 32 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.) 33 Section 99. Effective date. This Act takes effect upon -5- LRB9111559EGfg 1 becoming law.
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