Illinois General Assembly

Previous General Assemblies

Public Act 099-0702


 

Public Act 0702 99TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 099-0702
 
SB2584 EnrolledLRB099 17112 EFG 41470 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Section 17-116 as follows:
 
    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
    (Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
    Sec. 17-116. Service retirement pension.
    (a) Each teacher having 20 years of service upon attainment
of age 55, or who thereafter attains age 55 shall be entitled
to a service retirement pension upon or after attainment of age
55; and each teacher in service on or after July 1, 1971, with
5 or more but less than 20 years of service shall be entitled
to receive a service retirement pension upon or after
attainment of age 62.
    (b) The service retirement pension for a teacher who
retires on or after June 25, 1971, at age 60 or over, shall be
calculated as follows:
        (1) For creditable service earned before July 1, 1998
    that has not been augmented under Section 17-119.1: 1.67%
    for each of the first 10 years of service; 1.90% for each
    of the next 10 years of service; 2.10% for each year of
    service in excess of 20 but not exceeding 30; and 2.30% for
    each year of service in excess of 30, based upon average
    salary as herein defined.
        (2) For creditable service earned on or after July 1,
    1998 by a member who has at least 30 years of creditable
    service on July 1, 1998 and who does not elect to augment
    service under Section 17-119.1: 2.3% of average salary for
    each year of creditable service earned on or after July 1,
    1998.
        (3) For all other creditable service: 2.2% of average
    salary for each year of creditable service.
    (c) When computing such service retirement pensions, the
following conditions shall apply:
        1. Average salary shall consist of the average annual
    rate of salary for the 4 consecutive years of validated
    service within the last 10 years of service when such
    average annual rate was highest. In the determination of
    average salary for retirement allowance purposes, for
    members who commenced employment after August 31, 1979,
    that part of the salary for any year shall be excluded
    which exceeds the annual full-time salary rate for the
    preceding year by more than 20%. In the case of a member
    who commenced employment before August 31, 1979 and who
    receives salary during any year after September 1, 1983
    which exceeds the annual full time salary rate for the
    preceding year by more than 20%, an Employer and other
    employers of eligible contributors as defined in Section
    17-106 shall pay to the Fund an amount equal to the present
    value of the additional service retirement pension
    resulting from such excess salary. The present value of the
    additional service retirement pension shall be computed by
    the Board on the basis of actuarial tables adopted by the
    Board. If a member elects to receive a pension from this
    Fund provided by Section 20-121, his salary under the State
    Universities Retirement System and the Teachers'
    Retirement System of the State of Illinois shall be
    considered in determining such average salary. Amounts
    paid after the effective date of this amendatory Act of
    1991 for unused vacation time earned after that effective
    date shall not under any circumstances be included in the
    calculation of average salary or the annual rate of salary
    for the purposes of this Article.
        2. Proportionate credit shall be given for validated
    service of less than one year.
        3. For retirement at age 60 or over the pension shall
    be payable at the full rate.
        4. For separation from service below age 60 to a
    minimum age of 55, the pension shall be discounted at the
    rate of 1/2 of one per cent for each month that the age of
    the contributor is less than 60, but a teacher may elect to
    defer the effective date of pension in order to eliminate
    or reduce this discount. This discount shall not be
    applicable to any participant who has at least 34 years of
    service or a retirement pension of at least 74.6% of
    average salary on the date the retirement annuity begins.
        5. No additional pension shall be granted for service
    exceeding 45 years. Beginning June 26, 1971 no pension
    shall exceed the greater of $1,500 per month or 75% of
    average salary as herein defined.
        6. Service retirement pensions shall begin on the
    effective date of resignation, retirement, the day
    following the close of the payroll period for which service
    credit was validated, or the time the person resigning or
    retiring attains age 55, or on a date elected by the
    teacher, whichever shall be latest; provided that, for a
    person who first becomes a member after the effective date
    of this amendatory Act of the 99th General Assembly, the
    benefit shall not commence more than one year prior to the
    date of the Fund's receipt of an application for the
    benefit.
        7. A member who is eligible to receive a retirement
    pension of at least 74.6% of average salary and will attain
    age 55 on or before December 31 during the year which
    commences on July 1 shall be deemed to attain age 55 on the
    preceding June 1.
        8. A member retiring after the effective date of this
    amendatory Act of 1998 shall receive a pension equal to 75%
    of average salary if the member is qualified to receive a
    retirement pension equal to at least 74.6% of average
    salary under this Article or as proportional annuities
    under Article 20 of this Code.
(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/29/2016