93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2651

 

Introduced 2/4/2004, by John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-116   from Ch. 108 1/2, par. 17-116
30 ILCS 805/8.28 new

    Amends the Chicago Teachers Article of the Illinois Pension Code. Raises the maximum allowable service retirement pension from 75% to 80% of average salary. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB2651 LRB093 14993 LRD 40562 b

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 changing
5 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 attainment
9 of age 55, or who thereafter attains age 55 shall be entitled
10 to a service retirement pension upon or after attainment of age
11 55; and each teacher in service on or after July 1, 1971, with
12 5 or more but less than 20 years of service shall be entitled
13 to receive a service retirement pension upon or after
14 attainment of age 62.
15     (b) The service retirement pension for a teacher who
16 retires on or after June 25, 1971, at age 60 or over, shall be
17 calculated 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
24     salary as herein defined.
25         (2) For creditable service earned on or after July 1,
26     1998 by a member who has at least 30 years of creditable
27     service on July 1, 1998 and who does not elect to augment
28     service under Section 17-119.1: 2.3% of average salary for
29     each year of creditable service earned on or after July 1,
30     1998.
31         (3) For all other creditable service: 2.2% of average
32     salary for each year of creditable service.

 

 

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1     (c) When computing such service retirement pensions, the
2 following conditions shall apply:
3         1. Average salary shall consist of the average annual
4     rate of salary for the 4 consecutive years of validated
5     service within the last 10 years of service when such
6     average annual rate was highest. In the determination of
7     average salary for retirement allowance purposes, for
8     members who commenced employment after August 31, 1979,
9     that part of the salary for any year shall be excluded
10     which exceeds the annual full-time salary rate for the
11     preceding year by more than 20%. In the case of a member
12     who commenced employment before August 31, 1979 and who
13     receives salary during any year after September 1, 1983
14     which exceeds the annual full time salary rate for the
15     preceding year by more than 20%, an Employer and other
16     employers of eligible contributors as defined in Section
17     17-106 shall pay to the Fund an amount equal to the present
18     value of the additional service retirement pension
19     resulting from such excess salary. The present value of the
20     additional service retirement pension shall be computed by
21     the Board on the basis of actuarial tables adopted by the
22     Board. If a member elects to receive a pension from this
23     Fund provided by Section 20-121, his salary under the State
24     Universities Retirement System and the Teachers'
25     Retirement System of the State of Illinois shall be
26     considered in determining such average salary. Amounts
27     paid after the effective date of this amendatory Act of
28     1991 for unused vacation time earned after that effective
29     date shall not under any circumstances be included in the
30     calculation of average salary or the annual rate of salary
31     for the purposes of this Article.
32         2. Proportionate credit shall be given for validated
33     service of less than one year.
34         3. For retirement at age 60 or over the pension shall
35     be payable at the full rate.
36         4. For separation from service below age 60 to a

 

 

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1     minimum age of 55, the pension shall be discounted at the
2     rate of 1/2 of one per cent for each month that the age of
3     the contributor is less than 60, but a teacher may elect to
4     defer the effective date of pension in order to eliminate
5     or reduce this discount. This discount shall not be
6     applicable to any participant who has at least 34 years of
7     service or a retirement pension of at least 74.6% of
8     average salary on the date the retirement annuity begins.
9         5. No additional pension shall be granted for service
10     exceeding 45 years. Beginning June 26, 1971 and through
11     June 30, 2004 no pension shall exceed the greater of $1,500
12     per month or 75% of average salary as herein defined.
13     Beginning July 1, 2004, no pension shall exceed 80% of
14     average salary as herein defined.
15         6. Service retirement pensions shall begin on the
16     effective date of resignation, retirement, the day
17     following the close of the payroll period for which service
18     credit was validated, or the time the person resigning or
19     retiring attains age 55, or on a date elected by the
20     teacher, whichever shall be latest.
21         7. A member who is eligible to receive a retirement
22     pension of at least 74.6% of average salary and will attain
23     age 55 on or before December 31 during the year which
24     commences on July 1 shall be deemed to attain age 55 on the
25     preceding June 1.
26         8. A member retiring after the effective date of this
27     amendatory Act of 1998 shall receive a pension equal to 75%
28     of average salary if the member is qualified to receive a
29     retirement pension equal to at least 74.6% of average
30     salary under this Article or as proportional annuities
31     under Article 20 of this Code.
32 (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 
33     Section 90. The State Mandates Act is amended by adding
34 Section 8.28 as follows:
 

 

 

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1     (30 ILCS 805/8.28 new)
2     Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
3 of this Act, no reimbursement by the State is required for the
4 implementation of any mandate created by this amendatory Act of
5 the 93rd General Assembly.
 
6     Section 99. Effective date. This Act takes effect upon
7 becoming law.