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Public Act 101-0263


 

Public Act 0263 101ST GENERAL ASSEMBLY

  
  
  

 


 
Public Act 101-0263
 
HB2628 EnrolledLRB101 08809 RPS 53897 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
Sections 17-116 and 17-125 as follows:
 
    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
    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 or termination as reflected
    in the records of the Employer, 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 July 29, 2016 (the
    effective date of Public Act 99-702) 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. 99-702, eff. 7-29-16.)
 
    (40 ILCS 5/17-125)  (from Ch. 108 1/2, par. 17-125)
    Sec. 17-125. Refund of contributions. Upon certification
by the Employer of a member's his resignation or termination
cancellation of his teaching certificate prior to completion of
the minimum term of service required to establish eligibility
for a pension and on written application therefor, a teacher
shall be paid a refund of all the amounts the member he has
contributed to the Fund, less any former refund that has not
been repaid.
    Upon certification by the Employer of the member's his
resignation or termination cancellation of his teaching
certificate after completion of the minimum term of service
required to establish eligibility for a pension and on written
application therefor, a teacher shall be paid a refund of all
the amounts the member he has contributed, less (1) any former
refund that has not been repaid, and (2) pension payments
received, provided the member he has executed and delivered to
the Board a written acknowledgment of forfeiture of all service
credit and rights to pension payments his written receipt and
release in that behalf. Thereupon, the member he shall have no
further interest in or claim against the Fund.
    A request for refund under either of the preceding
paragraphs shall be considered valid if the member's withdrawal
from service occurred at least 2 months prior to the filing of
such request.
    Upon retirement of a teacher either on immediate or
deferred pension, if the teacher is not then married, or if the
member's his spouse or children do not meet the qualifying
conditions for a survivor's or children's pension pensions, the
total amount contributed by the member him or otherwise paid by
deductions from salary for survivor's pension, shall be
refunded to the member him, without interest. No survivor's or
children's pension rights shall be effective thereafter in such
a case.
    During a teacher's term of service, no refund is payable
except contributions made in error.
(Source: P.A. 90-566, eff. 1-2-98.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/9/2019