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92_SB0278 LRB9204695EGfg 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 adding Section 17-116.2 as follows: 6 (40 ILCS 5/17-116.2 new) 7 Sec. 17-116.2. Early retirement incentives; persons 8 receiving grievance backpay award. 9 (a) This Section applies only to a teacher who (i) 10 applied for retirement on June 12, 1998 and resigned 11 effective June 15, 1998, (ii) as a result of grievance 12 proceedings received a backpay award of approximately 13 $38,906, and (iii) applies to the Fund in writing within 90 14 days following the effective date of this amendatory Act of 15 the 92nd General Assembly for the benefits provided under 16 this Section. 17 (b) Notwithstanding Section 1-103.1, Section 17-157, or 18 any other provision of this Article, an eligible person who 19 applies for the benefits provided by this Section shall have 20 his or her retirement pension recalculated within 60 days 21 following the date of application for the benefits of this 22 Section. The recalculated pension shall begin to accrue, and 23 the person shall be deemed to have retired, on October 1, 24 1994. The recalculated pension shall be based on the 25 retirement formulas and other provisions of this Article in 26 effect on October 1, 1994, except that it shall include any 27 additional credits or earnings established under this 28 Section, including any creditable service and age enhancement 29 established under subsection (d). The difference between the 30 recalculated amount of pension (including any applicable 31 annual increases) and the retirement pension actually -2- LRB9204695EGfg 1 received between October 1, 1994 and the date of 2 recalculation, minus any amount to be deducted under 3 subsection (f), shall be paid to the pensioner in a lump sum 4 within 60 days following the date of recalculation. 5 (c) An eligible person who applies for the benefits 6 provided under this Section shall be entitled to have the 7 backpay award received under a grievance procedure considered 8 in the determination of salary for the purposes of 9 recalculating his or her retirement pension under this 10 Section. 11 An eligible person who applies for the benefits provided 12 under this Section shall be entitled to have any additional 13 service credit received as a result of a grievance procedure 14 or other administrative determination counted in the 15 determination of creditable service for purposes of 16 recalculating his or her retirement pension under this 17 Section. 18 (d) In recognition of a lost opportunity to participate 19 in an early retirement program under this Article, an 20 eligible person who applies for the benefits provided under 21 this Section may establish up to 5 years of additional 22 creditable service under this subsection. In addition, for 23 each period of creditable service established under this 24 subsection, a person's age at retirement shall be deemed to 25 be increased by an equal period. 26 The creditable service established under this subsection 27 may be used for all purposes under this Article and the 28 Retirement Systems Reciprocal Act, except for the purposes of 29 Section 17-116.1 and the determination of average salary or 30 compensation under this or any other Article of this Code. 31 The age enhancement established under this subsection may 32 be used for all purposes under this Article (including 33 calculation of a proportionate pension payable by this Fund 34 under the Retirement Systems Reciprocal Act), except for -3- LRB9204695EGfg 1 purposes of the reversionary pension under Section 17-120, 2 and distributions required by federal law on account of age. 3 However, age enhancement established under this subsection 4 shall not be used in determining benefits payable under other 5 Articles of this Code under the Retirement Systems Reciprocal 6 Act. 7 This subsection (d) does not apply to any person who has 8 received any early retirement incentive under Section 9 17-116.1, 17-116.3, 17-116.4, 17-116.5, or 17-116.6. 10 (e) For all creditable service established under 11 subsection (d), the employer must pay to the Fund an employer 12 contribution consisting of 12% of the member's highest annual 13 full-time rate of compensation for each year of creditable 14 service granted under subsection (d). 15 The employer contribution shall be paid to the Fund in a 16 single sum within 6 months after the effective date of this 17 amendatory Act of the 92nd General Assembly. The employer's 18 failure to make the required contributions in a timely manner 19 shall obligate the employer to pay interest to the Fund at 20 the rate of 10% per year, compounded annually, but shall not 21 affect the payment of the retirement pension. 22 (f) For all creditable service established under 23 subsection (d), the employee must pay to the Fund an employee 24 contribution consisting of 4% of the member's highest annual 25 salary rate used in the determination of the retirement 26 pension for each year of creditable service granted under 27 this Section. The employee contribution shall be deducted 28 from the retirement annuity in 24 monthly installments. 29 (g) An annuitant who has received any age enhancement or 30 creditable service under subsection (d) and whose pension is 31 suspended or cancelled under Section 17-149 or 17-150 shall 32 thereby forfeit that age enhancement and creditable service. 33 The forfeiture of creditable service under this subsection 34 shall not entitle the employer to a refund of the employer -4- LRB9204695EGfg 1 contribution paid under subsection (e), nor to forgiveness of 2 any part of that contribution that remains unpaid. The 3 forfeiture of creditable service under this subsection shall 4 not entitle the employee to a refund of the employee 5 contribution paid under subsection (f). 6 Section 90. The State Mandates Act is amended by adding 7 Section 8.25 as follows: 8 (30 ILCS 805/8.25 new) 9 Sec. 8.25. 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 92nd General Assembly. 13 Section 99. Effective date. This Act takes effect upon 14 becoming law.
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