State of Illinois
2019 and 2020


Introduced 2/15/2019, by Sen. Mattie Hunter


40 ILCS 5/17-119.1
40 ILCS 5/17-116.1 rep.
40 ILCS 5/17-116.3 rep.
40 ILCS 5/17-116.4 rep.
40 ILCS 5/17-116.5 rep.
40 ILCS 5/17-116.6 rep.

    Amends the Chicago Teacher Article of the Illinois Pension Code. Removes a provision concerning a reduction in a specified contribution for certain members who retire before July 1, 1998. Repeals obsolete provisions concerning early retirement incentives. Effective immediately.

LRB101 08811 RPS 53900 b






SB1765LRB101 08811 RPS 53900 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
5Section 17-119.1 as follows:
6    (40 ILCS 5/17-119.1)
7    Sec. 17-119.1. Optional increase in retirement annuity.
8    (a) A member of the Fund may qualify for the augmented rate
9under subdivision (b)(3) of Section 17-116 for all years of
10creditable service earned before July 1, 1998 by making the
11optional contribution specified in subsection (b); except that
12a member who retires on or after July 1, 1998 with at least 30
13years of creditable service at retirement qualifies for the
14augmented rate without making any contribution under
15subsection (b). Any member who retires on or after July 1, 1998
16and before the effective date of this amendatory Act of the
1792nd General Assembly with at least 30 years of creditable
18service shall be paid a lump sum equal to the amount he or she
19would have received under the augmented rate minus the amount
20he or she actually received. A member may not elect to qualify
21for the augmented rate for only a portion of his or her
22creditable service earned before July 1, 1998.
23    (b) The contribution shall be an amount equal to 1.0% of



SB1765- 2 -LRB101 08811 RPS 53900 b

1the member's highest salary rate in the 4 consecutive school
2years immediately prior to but not including the school year in
3which the application occurs, multiplied by the number of years
4of creditable service earned by the member before July 1, 1998
5or 20, whichever is less. This contribution shall be reduced by
61.0% of that salary rate for every 3 full years of creditable
7service earned by the member after June 30, 1998. The
8contribution shall be further reduced at the rate of 25% of the
9contribution (as reduced for service after June 30, 1998) for
10each year of the member's total creditable service in excess of
1134 years. The contribution shall not in any event exceed 20% of
12that salary rate.
13    The member shall pay to the Fund the amount of the
14contribution as calculated at the time of application under
15this Section. The amount of the contribution determined under
16this subsection shall be recalculated at the time of
17retirement, and if the Fund determines that the amount paid by
18the member exceeds the recalculated amount, the Fund shall
19refund the difference to the member with regular interest from
20the date of payment to the date of refund.
21    The contribution required by this subsection shall be paid
22in one of the following ways or in a combination of the
23following ways that does not extend over more than 5 years:
24        (i) in a lump sum on or before the date of retirement;
25        (ii) in substantially equal installments over a period
26    of time not to exceed 5 years, as a deduction from salary



SB1765- 3 -LRB101 08811 RPS 53900 b

1    in accordance with Section 17-130.2;
2        (iii) in substantially equal monthly installments over
3    a 24-month period, by a deduction from the annuitant's
4    monthly benefit.
5    (c) If the member fails to make the full contribution under
6this Section in a timely fashion, the payments made under this
7Section shall be refunded to the member, without interest. If
8the member (including a member who has become an annuitant)
9dies before making the full contribution, the payments made
10under this Section shall be refunded to the member's designated
11beneficiary if there is no survivor's or children's pension
12benefit payable. If there is a survivor's or children's benefit
13payable, then all payments made under this Section shall be
14retained by the Fund and all such survivor's or children's
15benefits payable shall be calculated as if all contributions
16required under this Section have been paid in full.
17    (d) For purposes of this Section and subsection (b) of
18Section 17-116, optional creditable service established by a
19member shall be deemed to have been earned at the time of the
20employment or other qualifying event upon which the service is
21based, rather than at the time the credit was established in
22this Fund.
23    (e) The contributions required under this Section are the
24responsibility of the teacher and not the teacher's employer.
25However, an employer of teachers may, after the effective date
26of this amendatory Act of 1998, specifically agree, through



SB1765- 4 -LRB101 08811 RPS 53900 b

1collective bargaining or otherwise, to make the contributions
2required by this Section on behalf of those teachers.
3(Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599,
4eff. 6-28-02; 92-651, eff. 7-11-02.)
5    (40 ILCS 5/17-116.1 rep.)
6    (40 ILCS 5/17-116.3 rep.)
7    (40 ILCS 5/17-116.4 rep.)
8    (40 ILCS 5/17-116.5 rep.)
9    (40 ILCS 5/17-116.6 rep.)
10    Section 10. The Illinois Pension Code is amended by
11repealing Sections 17-116.1, 17-116.3, 17-116.4, 17-116.5, and
13    Section 99. Effective date. This Act takes effect upon
14becoming law.