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92_SB0564 LRB9203770EGfg 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 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 (i) has earned during the period immediately 18 preceding the last day of service at least one year of 19 contributing creditable service as an employee of a 20 department as defined in Section 14-103.04, (ii) has earned 21 at least 5 years of contributing creditable service as an 22 employee of a department as defined in Section 14-103.04, and 23 (iii) retires on or after January 1, 2001 is entitled to a 24 retirement annuity upon or after attainment of an age which, 25 when added to the number of years of his or her total 26 creditable service, equals at least 85. Portions of years 27 shall be counted as decimal equivalents. 28 A member who is eligible to receive a retirement annuity 29 of at least 74.6% of final average salary and will attain age 30 55 on or before December 31 during the year which commences 31 on July 1 shall be deemed to attain age 55 on the preceding -2- LRB9203770EGfg 1 June 1. 2 A member meeting the above eligibility conditions is 3 entitled to a retirement annuity upon written application to 4 the board setting forth the date the member wishes the 5 retirement annuity to commence. However, the effective date 6 of the retirement annuity shall be no earlier than the day 7 following the last day of creditable service, regardless of 8 the date of official termination of employment. To be 9 eligible for a retirement annuity, a member shall not be 10 employed as a teacher in the schools included under this 11 System or under Article 17, unless the member is disabled (in 12 which event, eligibility for salary must cease), or unless 13 the System is required by federal law to commence payment due 14 to the member's age; the changes to this sentence made by 15 this amendatory Act of 1991 shall apply without regard to 16 whether the member terminated employment before or after its 17 effective date. 18 (Source: P.A. 90-582, eff. 5-27-98; 91-927, eff. 12-14-00.) 19 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133) 20 Sec. 16-133. Retirement annuity; amount. 21 (a) The amount of the retirement annuity shall be the 22 larger of the amounts determined under paragraphs (A) and (B) 23 below: 24 (A) An amount consisting of the sum of the 25 following: 26 (1) An amount that can be provided on an 27 actuarially equivalent basis by the member's 28 accumulated contributions at the time of retirement; 29 and 30 (2) The sum of (i) the amount that can be 31 provided on an actuarially equivalent basis by the 32 member's accumulated contributions representing 33 service prior to July 1, 1947, and (ii) the amount -3- LRB9203770EGfg 1 that can be provided on an actuarially equivalent 2 basis by the amount obtained by multiplying 1.4 3 times the member's accumulated contributions 4 covering service subsequent to June 30, 1947; and 5 (3) If there is prior service, 2 times the 6 amount that would have been determined under 7 subparagraph (2) of paragraph (A) above on account 8 of contributions which would have been made during 9 the period of prior service creditable to the member 10 had the System been in operation and had the member 11 made contributions at the contribution rate in 12 effect prior to July 1, 1947. 13 (B) An amount consisting of the greater of the 14 following: 15 (1) For creditable service earned before July 16 1, 1998 that has not been augmented under Section 17 16-129.1: 1.67% of final average salary for each of 18 the first 10 years of creditable service, 1.90% of 19 final average salary for each year in excess of 10 20 but not exceeding 20, 2.10% of final average salary 21 for each year in excess of 20 but not exceeding 30, 22 and 2.30% of final average salary for each year in 23 excess of 30; and 24 For creditable service earned on or after July 25 1, 1998 by a member who has at least 24 years of 26 creditable service on July 1, 1998 and who does not 27 elect to augment service under Section 16-129.1: 28 2.2% of final average salary for each year of 29 creditable service earned on or after July 1, 1998 30 but before the member reaches a total of 30 years of 31 creditable service and 2.3% of final average salary 32 for each year of creditable service earned on or 33 after July 1, 1998 and after the member reaches a 34 total of 30 years of creditable service; and -4- LRB9203770EGfg 1 For all other creditable service: 2.2% of 2 final average salary for each year of creditable 3 service; or 4 (2) 1.5% of final average salary for each year 5 of creditable service plus the sum $7.50 for each of 6 the first 20 years of creditable service. 7 The amount of the retirement annuity determined under 8 this paragraph (B) shall be reduced by 1/2 of 1% for each 9 month that the member is less than age 60 at the time the 10 retirement annuity begins. However, this reduction shall 11 not apply (i) if the member has at least 34
35years of 12 creditable service, or (ii) if the member retires on 13 account of disability under Section 16-149.2 of this 14 Article with at least 20 years of creditable service, or 15 (iii) if the member (1) has earned during the period 16 immediately preceding the last day of service at least 17 one year of contributing creditable service as an 18 employee of a department as defined in Section 14-103.04, 19 (2) has earned at least 5 years of contributing 20 creditable service as an employee of a department as 21 defined in Section 14-103.04, (3) retires on or after 22 January 1, 2001, and (4) retires having attained an age 23 which, when added to the number of years of his or her 24 total creditable service, equals at least 85. Portions 25 of years shall be counted as decimal equivalents. 26 (b) For purposes of this Section, final average salary 27 shall be the average salary for the highest 4 consecutive 28 years within the last 10 years of creditable service as 29 determined under rules of the board. The minimum final 30 average salary shall be considered to be $2,400 per year. 31 In the determination of final average salary for members 32 other than elected officials and their appointees when such 33 appointees are allowed by statute, that part of a member's 34 salary for any year beginning after June 30, 1979 which -5- LRB9203770EGfg 1 exceeds the member's annual full-time salary rate with the 2 same employer for the preceding year by more than 20% shall 3 be excluded. The exclusion shall not apply in any year in 4 which the member's creditable earnings are less than 50% of 5 the preceding year's mean salary for downstate teachers as 6 determined by the survey of school district salaries provided 7 in Section 2-3.103 of the School Code. 8 (c) In determining the amount of the retirement annuity 9 under paragraph (B) of this Section, a fractional year shall 10 be granted proportional credit. 11 (d) The retirement annuity determined under paragraph 12 (B) of this Section shall be available only to members who 13 render teaching service after July 1, 1947 for which member 14 contributions are required, and to annuitants who re-enter 15 under the provisions of Section 16-150. 16 (e) The maximum retirement annuity provided under 17 paragraph (B) of this Section shall be 75% of final average 18 salary. 19 (f) A member retiring after the effective date of this 20 amendatory Act of 1998 shall receive a pension equal to 75% 21 of final average salary if the member is qualified to receive 22 a retirement annuity equal to at least 74.6% of final average 23 salary under this Article or as proportional annuities under 24 Article 20 of this Code. 25 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99; 26 91-887, eff. 7-6-00; 91-927, eff. 12-14-00.) 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.
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