093_SB0501
LRB093 02555 EFG 02565 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
5 adding Section 17-116.7 as follows:
6 (40 ILCS 5/17-116.7 new)
7 Sec. 17-116.7. Purchase of additional service credit.
8 (a) This Section applies only to a person who (i) served
9 as a principal for at least 5 years, (ii) left service due to
10 a failure to receive a new contract from the local school
11 council, (iii) elected the early retirement without discount
12 option under Section 17-116.1, (iv) began receiving a
13 retirement pension before 1992, and (v) has more than 30
14 years of service credit.
15 (b) An eligible person may apply in writing to the Board
16 to establish an additional 5 years of creditable service in
17 the Fund. The application must be received by the Board
18 within 90 days following the effective date of this Section,
19 and must be accompanied by payment of the amount determined
20 under subsection (c).
21 (c) For each year of creditable service established
22 under this Section, the applicant must pay to the Fund a
23 contribution consisting of 4% of the highest annual salary
24 rate that was used in the determination of the person's
25 retirement pension. The amount of the employee contribution
26 already paid by the person under Section 17-116.1 shall be
27 credited against the total contribution required under this
28 subsection.
29 (d) A person who has purchased any creditable service
30 under this Section shall have his or her pension recalculated
31 to reflect the additional service. The resulting increase in
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1 pension shall begin to accrue on the first pension payment
2 date following receipt of the required contribution by the
3 Fund.
4 (e) A person who has purchased any creditable service
5 under this Section and whose pension is suspended or
6 cancelled under Section 17-149 or 17-150 shall thereby
7 forfeit that creditable service. The forfeiture of
8 creditable service under this subsection shall not entitle
9 the person to a refund of the contribution paid under this
10 Section.
11 (f) A person who received any early retirement incentive
12 under Section 17-116.3, 17-116.4, 17-116.5, or 17-116.6 may
13 not purchase additional creditable service under this
14 Section.
15 Section 90. The State Mandates Act is amended by adding
16 Section 8.27 as follows:
17 (30 ILCS 805/8.27 new)
18 Sec. 8.27. Exempt mandate. Notwithstanding Sections 6
19 and 8 of this Act, no reimbursement by the State is required
20 for the implementation of any mandate created by this
21 amendatory Act of the 93rd General Assembly.
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.