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92_SB1632 LRB9210974LDpc 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 17-116 as follows: 6 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116) 7 Sec. 17-116. Service retirement pension. 8 (a) Each teacher having 20 years of service upon 9 attainment of age 55, or who thereafter attains age 55 shall 10 be entitled to a service retirement pension upon or after 11 attainment of age 55; and each teacher in service on or after 12 July 1, 1971, with 5 or more but less than 20 years of 13 service shall be entitled to receive a service retirement 14 pension upon or after attainment of age 62. Each teacher in 15 service on or after July 1, 2003 with 10 or more but less 16 than 20 years of service shall be entitled to receive a 17 service retirement pension upon or after attainment of age 18 60. 19 (b) The service retirement pension for a teacher who 20 retires on or after June 25, 1971, at age 60 or over, shall 21 be calculated as follows: 22 (1) For creditable service earned before July 1, 23 1998 that has not been augmented under Section 17-119.1: 24 1.67% for each of the first 10 years of service; 1.90% 25 for each of the next 10 years of service; 2.10% for each 26 year of service in excess of 20 but not exceeding 30; and 27 2.30% for each year of service in excess of 30, based 28 upon average salary as herein defined. 29 (2) For creditable service earned on or after July 30 1, 1998 by a member who has at least 30 years of 31 creditable service on July 1, 1998 and who does not elect -2- LRB9210974LDpc 1 to augment service under Section 17-119.1: 2.3% of 2 average salary for each year of creditable service earned 3 on or after July 1, 1998. 4 (3) For all other creditable service: 2.2% of 5 average salary for each year of creditable service. 6 (c) When computing such service retirement pensions, the 7 following conditions shall apply: 8 1. Average salary shall consist of the average 9 annual rate of salary for the 4 consecutive years of 10 validated service within the last 10 years of service 11 when such average annual rate was highest. In the 12 determination of average salary for retirement allowance 13 purposes, for members who commenced employment after 14 August 31, 1979, that part of the salary for any year 15 shall be excluded which exceeds the annual full-time 16 salary rate for the preceding year by more than 20%. In 17 the case of a member who commenced employment before 18 August 31, 1979 and who receives salary during any year 19 after September 1, 1983 which exceeds the annual full 20 time salary rate for the preceding year by more than 20%, 21 an Employer and other employers of eligible contributors 22 as defined in Section 17-106 shall pay to the Fund an 23 amount equal to the present value of the additional 24 service retirement pension resulting from such excess 25 salary. The present value of the additional service 26 retirement pension shall be computed by the Board on the 27 basis of actuarial tables adopted by the Board. If a 28 member elects to receive a pension from this Fund 29 provided by Section 20-121, his salary under the State 30 Universities Retirement System and the Teachers' 31 Retirement System of the State of Illinois shall be 32 considered in determining such average salary. Amounts 33 paid after the effective date of this amendatory Act of 34 1991 for unused vacation time earned after that effective -3- LRB9210974LDpc 1 date shall not under any circumstances be included in the 2 calculation of average salary or the annual rate of 3 salary for the purposes of this Article. 4 2. Proportionate credit shall be given for 5 validated service of less than one year. 6 3. For retirement at age 60 or over the pension 7 shall be payable at the full rate. 8 4. For separation from service below age 60 to a 9 minimum age of 55, the pension shall be discounted at the 10 rate of 1/2 of one per cent for each month that the age 11 of the contributor is less than 60, but a teacher may 12 elect to defer the effective date of pension in order to 13 eliminate or reduce this discount. This discount shall 14 not be applicable to any participant who has at least 34 15 years of service or a retirement pension of at least 16 74.6% of average salary on the date the retirement 17 annuity begins. 18 5. No additional pension shall be granted for 19 service exceeding 45 years. Beginning June 26, 1971 no 20 pension shall exceed the greater of $1,500 per month or 21 75% of average salary as herein defined. 22 6. Service retirement pensions shall begin on the 23 effective date of resignation, retirement, the day 24 following the close of the payroll period for which 25 service credit was validated, or the time the person 26 resigning or retiring attains age 55, or on a date 27 elected by the teacher, whichever shall be latest. 28 7. A member who is eligible to receive a retirement 29 pension of at least 74.6% of average salary and will 30 attain age 55 on or before December 31 during the year 31 which commences on July 1 shall be deemed to attain age 32 55 on the preceding June 1. 33 8. A member retiring after the effective date of 34 this amendatory Act of 1998 shall receive a pension equal -4- LRB9210974LDpc 1 to 75% of average salary if the member is qualified to 2 receive a retirement pension equal to at least 74.6% of 3 average salary under this Article or as proportional 4 annuities under Article 20 of this Code. 5 (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.) 6 Section 90. The State Mandates Act is amended by adding 7 Section 8.26 as follows: 8 (30 ILCS 805/8.26 new) 9 Sec. 8.26. 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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