Full Text of HB2628 101st General Assembly
HB2628enr 101ST GENERAL ASSEMBLY |
| | HB2628 Enrolled | | LRB101 08809 RPS 53897 b |
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| 1 | | AN ACT concerning 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 | | Sections 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 | 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 |
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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
| 11 | | following 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 | 6 | | by the Employer of a member's his resignation or termination | 7 | | cancellation
of his teaching certificate prior to completion of | 8 | | the
minimum term of service required to establish eligibility | 9 | | for a pension
and on written application therefor, a teacher | 10 | | shall be paid a refund of
all the amounts the member he has | 11 | | contributed to the Fund, less any former
refund
that has not | 12 | | been repaid.
| 13 | | Upon certification by the Employer of the member's his | 14 | | resignation or termination
cancellation of his teaching | 15 | | certificate after completion of the minimum
term of service | 16 | | required to establish eligibility for a pension and on
written | 17 | | application therefor, a teacher shall be paid a refund of all
| 18 | | the amounts the member he has contributed, less (1) any former | 19 | | refund that has not
been repaid, and (2) pension payments | 20 | | received, provided the member he has executed
and delivered to | 21 | | the Board a written acknowledgment of forfeiture of all service | 22 | | credit and rights to pension payments his written receipt and | 23 | | release in
that
behalf . Thereupon, the member he shall have no | 24 | | further interest in or claim against
the Fund.
| 25 | | A request for refund under either of the preceding |
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| 1 | | paragraphs shall
be considered valid if the member's withdrawal | 2 | | from service occurred at least 2
months prior to the filing of | 3 | | such request.
| 4 | | Upon retirement of a teacher either on immediate or | 5 | | deferred pension,
if the teacher is not then married, or if the | 6 | | member's his spouse or children do not
meet the qualifying | 7 | | conditions for a survivor's or children's pension pensions ,
the | 8 | | total amount contributed by the member him or otherwise paid by | 9 | | deductions from
salary for survivor's pension, shall be | 10 | | refunded to the member him , without
interest. No survivor's or | 11 | | children's pension rights shall be effective
thereafter in such | 12 | | a case.
| 13 | | During a teacher's term of service, no refund is payable | 14 | | except
contributions made in error.
| 15 | | (Source: P.A. 90-566, eff. 1-2-98.)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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