State of Illinois
92nd General Assembly
Legislation

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92_HB0835

 
                                               LRB9204157LDpr

 1        AN ACT in relation to public employee benefits.

 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 Section 17-119.1 as follows:

 6        (40 ILCS 5/17-119.1)
 7        Sec. 17-119.1.  Optional increase in retirement annuity.
 8        (a)  A  member  of the Fund may qualify for the augmented
 9    rate under subdivision (b)(3) of Section 17-116 for all years
10    of creditable service earned before July 1,  1998  by  making
11    the optional contribution specified in subsection (b); except
12    that  a  member  who retires on or after July 1, 1998 with at
13    least 30 years of creditable service at retirement  qualifies
14    for  the augmented rate without making any contribution under
15    subsection (b).  Any member who retires on or after  July  1,
16    1998  and before the effective date of this amendatory Act of
17    the  92nd  General  Assembly  with  at  least  30  years   of
18    creditable  service  shall  be  paid  a lump sum equal to the
19    amount he or she would have received under the augmented rate
20    minus the amount he or she actually received.  A  member  may
21    not  elect  to  qualify  for  the  augmented  rate for only a
22    portion of his or her creditable service earned  before  July
23    1, 1998.
24        (b)  The contribution shall be an amount equal to 1.0% of
25    the  member's highest salary rate in the 4 consecutive school
26    years immediately prior to but not including the school  year
27    in  which the application occurs, multiplied by the number of
28    years of creditable service earned by the member before  July
29    1, 1998 or 20, whichever is less.  This contribution shall be
30    reduced by 1.0% of that salary rate for every 3 full years of
31    creditable  service earned by the member after June 30, 1998.
 
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 1    The contribution shall be further reduced at the rate of  25%
 2    of  the  contribution  (as reduced for service after June 30,
 3    1998) for each year of the member's total creditable  service
 4    in  excess  of  34  years.  The contribution shall not in any
 5    event exceed 20% of that salary rate.
 6        The member shall pay  to  the  Fund  the  amount  of  the
 7    contribution  as  calculated at the time of application under
 8    this Section.  The  amount  of  the  contribution  determined
 9    under  this  subsection  shall be recalculated at the time of
10    retirement, and if the Fund determines that the  amount  paid
11    by the member exceeds the recalculated amount, the Fund shall
12    refund  the  difference  to  the member with regular interest
13    from the date of payment to the date of refund.
14        The contribution required by  this  subsection  shall  be
15    paid  in one of the following ways or in a combination of the
16    following ways that does not extend over more than 5 years:
17             (i)  in  a  lump  sum  on  or  before  the  date  of
18        retirement;
19             (ii)  in substantially  equal  installments  over  a
20        period of time not to exceed 5 years, as a deduction from
21        salary in accordance with Section 17-130.2;
22             (iii)  if  the  member  becomes  an annuitant before
23        June   30,   2003,   in   substantially   equal   monthly
24        installments over a 24-month period, by a deduction  from
25        the annuitant's monthly benefit.
26        (c)  If  the  member  fails to make the full contribution
27    under this Section in a timely  fashion,  the  payments  made
28    under  this  Section shall be refunded to the member, without
29    interest.   If  the  member  dies  before  making  the   full
30    contribution,  the  payments made under this Section shall be
31    refunded to the member's designated beneficiary.
32        (d)  For purposes of this Section and subsection  (b)  of
33    Section  17-116, optional creditable service established by a
34    member shall be deemed to have been earned at the time of the
 
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 1    employment or other qualifying event upon which  the  service
 2    is  based, rather than at the time the credit was established
 3    in this Fund.
 4        (e)  The contributions required under  this  Section  are
 5    the  responsibility  of  the  teacher  and  not the teacher's
 6    employer.  However, an employer of teachers  may,  after  the
 7    effective  date  of this amendatory Act of 1998, specifically
 8    agree, through collective bargaining or  otherwise,  to  make
 9    the contributions required by this Section on behalf of those
10    teachers.
11    (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

12        Section  90.  The State Mandates Act is amended by adding
13    Section 8.25 as follows:

14        (30 ILCS 805/8.25 new)
15        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
16    and  8 of this Act, no reimbursement by the State is required
17    for  the  implementation  of  any  mandate  created  by  this
18    amendatory Act of the 92nd General Assembly.

19        Section 99. Effective date.  This Act takes  effect  upon
20    becoming law.

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