HB2628 EnrolledLRB101 08809 RPS 53897 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 17-116 and 17-125 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 attainment
9of age 55, or who thereafter attains age 55 shall be entitled
10to a service retirement pension upon or after attainment of age
1155; and each teacher in service on or after July 1, 1971, with
125 or more but less than 20 years of service shall be entitled
13to receive a service retirement pension upon or after
14attainment of age 62.
15    (b) The service retirement pension for a teacher who
16retires on or after June 25, 1971, at age 60 or over, shall be
17calculated as follows:
18        (1) For creditable service earned before July 1, 1998
19    that has not been augmented under Section 17-119.1: 1.67%
20    for each of the first 10 years of service; 1.90% for each
21    of the next 10 years of service; 2.10% for each year of
22    service in excess of 20 but not exceeding 30; and 2.30% for
23    each year of service in excess of 30, based upon average

 

 

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1    salary as herein defined.
2        (2) For creditable service earned on or after July 1,
3    1998 by a member who has at least 30 years of creditable
4    service on July 1, 1998 and who does not elect to augment
5    service under Section 17-119.1: 2.3% of average salary for
6    each year of creditable service earned on or after July 1,
7    1998.
8        (3) For all other creditable service: 2.2% of average
9    salary for each year of creditable service.
10    (c) When computing such service retirement pensions, the
11following conditions shall apply:
12        1. Average salary shall consist of the average annual
13    rate of salary for the 4 consecutive years of validated
14    service within the last 10 years of service when such
15    average annual rate was highest. In the determination of
16    average salary for retirement allowance purposes, for
17    members who commenced employment after August 31, 1979,
18    that part of the salary for any year shall be excluded
19    which exceeds the annual full-time salary rate for the
20    preceding year by more than 20%. In the case of a member
21    who commenced employment before August 31, 1979 and who
22    receives salary during any year after September 1, 1983
23    which exceeds the annual full time salary rate for the
24    preceding year by more than 20%, an Employer and other
25    employers of eligible contributors as defined in Section
26    17-106 shall pay to the Fund an amount equal to the present

 

 

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1    value of the additional service retirement pension
2    resulting from such excess salary. The present value of the
3    additional service retirement pension shall be computed by
4    the Board on the basis of actuarial tables adopted by the
5    Board. If a member elects to receive a pension from this
6    Fund provided by Section 20-121, his salary under the State
7    Universities Retirement System and the Teachers'
8    Retirement System of the State of Illinois shall be
9    considered in determining such average salary. Amounts
10    paid after the effective date of this amendatory Act of
11    1991 for unused vacation time earned after that effective
12    date shall not under any circumstances be included in the
13    calculation of average salary or the annual rate of salary
14    for the purposes of this Article.
15        2. Proportionate credit shall be given for validated
16    service of less than one year.
17        3. For retirement at age 60 or over the pension shall
18    be payable at the full rate.
19        4. For separation from service below age 60 to a
20    minimum age of 55, the pension shall be discounted at the
21    rate of 1/2 of one per cent for each month that the age of
22    the contributor is less than 60, but a teacher may elect to
23    defer the effective date of pension in order to eliminate
24    or reduce this discount. This discount shall not be
25    applicable to any participant who has at least 34 years of
26    service or a retirement pension of at least 74.6% of

 

 

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1    average salary on the date the retirement annuity begins.
2        5. No additional pension shall be granted for service
3    exceeding 45 years. Beginning June 26, 1971 no pension
4    shall exceed the greater of $1,500 per month or 75% of
5    average salary as herein defined.
6        6. Service retirement pensions shall begin on the
7    effective date of resignation or termination as reflected
8    in the records of the Employer, retirement, the day
9    following the close of the payroll period for which service
10    credit was validated, or the time the person resigning or
11    retiring attains age 55, or on a date elected by the
12    teacher, whichever shall be latest; provided that, for a
13    person who first becomes a member after July 29, 2016 (the
14    effective date of Public Act 99-702) this amendatory Act of
15    the 99th General Assembly, the benefit shall not commence
16    more than one year prior to the date of the Fund's receipt
17    of an application for the benefit.
18        7. A member who is eligible to receive a retirement
19    pension of at least 74.6% of average salary and will attain
20    age 55 on or before December 31 during the year which
21    commences on July 1 shall be deemed to attain age 55 on the
22    preceding June 1.
23        8. A member retiring after the effective date of this
24    amendatory Act of 1998 shall receive a pension equal to 75%
25    of average salary if the member is qualified to receive a
26    retirement pension equal to at least 74.6% of average

 

 

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1    salary under this Article or as proportional annuities
2    under Article 20 of this Code.
3(Source: P.A. 99-702, eff. 7-29-16.)
 
4    (40 ILCS 5/17-125)  (from Ch. 108 1/2, par. 17-125)
5    Sec. 17-125. Refund of contributions. Upon certification
6by the Employer of a member's his resignation or termination
7cancellation of his teaching certificate prior to completion of
8the minimum term of service required to establish eligibility
9for a pension and on written application therefor, a teacher
10shall be paid a refund of all the amounts the member he has
11contributed to the Fund, less any former refund that has not
12been repaid.
13    Upon certification by the Employer of the member's his
14resignation or termination cancellation of his teaching
15certificate after completion of the minimum term of service
16required to establish eligibility for a pension and on written
17application therefor, a teacher shall be paid a refund of all
18the amounts the member he has contributed, less (1) any former
19refund that has not been repaid, and (2) pension payments
20received, provided the member he has executed and delivered to
21the Board a written acknowledgment of forfeiture of all service
22credit and rights to pension payments his written receipt and
23release in that behalf. Thereupon, the member he shall have no
24further interest in or claim against the Fund.
25    A request for refund under either of the preceding

 

 

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1paragraphs shall be considered valid if the member's withdrawal
2from service occurred at least 2 months prior to the filing of
3such request.
4    Upon retirement of a teacher either on immediate or
5deferred pension, if the teacher is not then married, or if the
6member's his spouse or children do not meet the qualifying
7conditions for a survivor's or children's pension pensions, the
8total amount contributed by the member him or otherwise paid by
9deductions from salary for survivor's pension, shall be
10refunded to the member him, without interest. No survivor's or
11children's pension rights shall be effective thereafter in such
12a case.
13    During a teacher's term of service, no refund is payable
14except contributions made in error.
15(Source: P.A. 90-566, eff. 1-2-98.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.