Full Text of HB2900 98th General Assembly
HB2900ham001 98TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 3/19/2013
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| 1 | | AMENDMENT TO HOUSE BILL 2900
| 2 | | AMENDMENT NO. ______. Amend House Bill 2900 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 16-133.2 and 16-176 as follows:
| 6 | | (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
| 7 | | Sec. 16-133.2. Early retirement without discount. | 8 | | (a) A member
retiring after June 1, 1980 and on or before | 9 | | June 30, 2005 (or as provided in subsection (b) of this | 10 | | Section), and
applying for a retirement annuity within 6 months | 11 | | of the last day of
teaching for which retirement contributions | 12 | | were required,
may elect at the time of application for a | 13 | | retirement annuity, to make
a one time member contribution to | 14 | | the System and thereby
avoid the reduction in the retirement | 15 | | annuity for retirement before age
60 specified in paragraph (B) | 16 | | of Section 16-133. The exercise of the
election shall also |
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| 1 | | obligate the last employer to make a one time
non-refundable | 2 | | contribution to the System. Substitute teachers wishing to
| 3 | | exercise this election must teach 85 or more days in one school | 4 | | term with
one employer, who shall be deemed the last employer | 5 | | for purposes of this
Section. The last day of teaching with | 6 | | that employer must be within 6
months of the date of | 7 | | application for retirement. All substitute
teaching credit | 8 | | applied toward the required 85 days must be earned after
June | 9 | | 30, 1990.
| 10 | | The one time member and employer contributions shall be a | 11 | | percentage of
the retiring member's highest annual salary rate | 12 | | used in the determination
of the average salary for retirement | 13 | | annuity purposes. However, when
determining the one-time | 14 | | member and employer contributions, that part of a
member's | 15 | | salary with the same employer which exceeds the annual salary | 16 | | rate
for the preceding year by more than 20% shall be excluded. | 17 | | The member
contribution shall be at the rate of 7% for the | 18 | | lesser of the following 2
periods: (1) for each year that the | 19 | | member is less than age 60; or (2) for
each year that the | 20 | | member's creditable service is less than 35 years. If a
member | 21 | | is at least age 55 and has at least 34 years of creditable | 22 | | service, no
member or employer contribution for the early | 23 | | retirement option shall be
required. The employer contribution | 24 | | shall be at the rate of 20% for each year
the member is under | 25 | | age 60.
| 26 | | Upon receipt of the application and election, the System |
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| 1 | | shall determine
the one time employee and employer | 2 | | contributions required. The member
contribution shall be | 3 | | credited to the individual account of the member and
the | 4 | | employer contribution shall be credited to the Benefit Trust | 5 | | Reserve. The
provisions of this subsection (a) providing for | 6 | | the avoidance of the reduction in retirement annuity shall
not | 7 | | be applicable until the member's contribution, if any, has been | 8 | | received
by the System; however, the date such contributions | 9 | | are received shall not be
considered in determining the | 10 | | effective date of retirement.
| 11 | | The number of members working for a single employer who may
| 12 | | retire under this subsection or subsection (b) in any year may | 13 | | be limited at the option
of the employer to a specified | 14 | | percentage of those eligible, not less
than 30%, with the right | 15 | | to participate to be allocated among those
applying on the | 16 | | basis of seniority in the service of the employer.
| 17 | | (b) The provisions of subsection (a) of this Section shall | 18 | | remain in effect for a member retiring after June 30, 2005 and | 19 | | on or before July 1, 2007, provided that the member satisfies | 20 | | both of the following requirements: | 21 | | (1) the member notified his or her employer of intent | 22 | | to retire under this Article on or before the effective | 23 | | date of this amendatory Act of the 94th General Assembly | 24 | | under the terms of a contract or collective bargaining | 25 | | agreement entered into, amended, or renewed with the | 26 | | employer on or before the effective date of this amendatory |
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| 1 | | Act of the 94th General Assembly; and
| 2 | | (2) the effective date of the member's retirement is on | 3 | | or before July 1, 2007. | 4 | | The member's employer must give evidence of the member's | 5 | | notification by providing to the System:
| 6 | | (i) a copy of the member's notification to the employer | 7 | | or the record of that notification;
| 8 | | (ii) an affidavit signed by the member and the | 9 | | employer, verifying the notification; and
| 10 | | (iii) any additional documentation that the System may | 11 | | require.
| 12 | | (c) Except as otherwise provided in subsections subsection | 13 | | (b) and (d) , and subject to the provisions of Section 16-176, a | 14 | | member retiring on or after July 1, 2005, and applying for a | 15 | | retirement annuity within 6 months of the last day of teaching | 16 | | for which retirement contributions were required, may elect at | 17 | | the time of application for a retirement annuity, to make a | 18 | | one-time member contribution to the System and thereby avoid | 19 | | the reduction in the retirement annuity for retirement before | 20 | | age 60 specified in paragraph (B) of Section 16-133. The | 21 | | exercise of the election shall also obligate the last employer | 22 | | to make a one-time nonrefundable contribution to the System. | 23 | | Substitute teachers wishing to exercise this election must | 24 | | teach 85 or more days in one school term with one employer, who | 25 | | shall be deemed the last employer for purposes of this Section. | 26 | | The last day of teaching with that employer must be within 6 |
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| 1 | | months of the date of application for retirement. All | 2 | | substitute teaching credit applied toward the required 85 days | 3 | | must be earned after June 30, 1990. | 4 | | The one-time member and employer contributions shall be a | 5 | | percentage of the retiring member's highest annual salary rate | 6 | | used in the determination of the average salary for retirement | 7 | | annuity purposes. However, when determining the one-time | 8 | | member and employer contributions, that part of a member's | 9 | | salary with the same employer which exceeds the annual salary | 10 | | rate for the preceding year by more than 20% shall be excluded. | 11 | | The member contribution shall be at the rate of 11.5% for the | 12 | | lesser of the following 2 periods: (1) for each year that the | 13 | | member is less than age 60; or (2) for each year that the | 14 | | member's creditable service is less than 35 years. The employer | 15 | | contribution shall be at the rate of 23.5% for each year the | 16 | | member is under age 60. | 17 | | Upon receipt of the application and election, the System | 18 | | shall determine the one-time employee and employer | 19 | | contributions required. The member contribution shall be | 20 | | credited to the individual account of the member and the | 21 | | employer contribution shall be credited to the Benefit Trust | 22 | | Reserve. The avoidance of the reduction in retirement annuity | 23 | | provided under this subsection (c) is not applicable until the | 24 | | member's contribution, if any, has been received by the System; | 25 | | however, the date that contribution is received shall not be | 26 | | considered in determining the effective date of retirement.
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| 1 | | The number of members working for a single employer who may | 2 | | retire under this subsection (c) in any year may be limited at | 3 | | the option of the employer to a specified percentage of those | 4 | | eligible, not less than 10%, with the right to participate to | 5 | | be allocated among those applying on the basis of seniority in | 6 | | the service of the employer. | 7 | | (d) Notwithstanding any other provision of this Section, | 8 | | beginning July 1, 2013, a member shall be ineligible to elect | 9 | | at the time of application for a retirement annuity, to make a | 10 | | one-time member contribution to the System and thereby avoid | 11 | | the reduction in the retirement annuity for retirement before | 12 | | age 60 specified in paragraph (B) of Section 16-133, unless, | 13 | | prior to July 1, 2013, he or she has notified his or her | 14 | | employer of his or her intent to retire under this Section | 15 | | before that date. | 16 | | (Source: P.A. 93-469, eff. 8-8-03; 94-4, eff. 6-1-05.)
| 17 | | (40 ILCS 5/16-176) (from Ch. 108 1/2, par. 16-176)
| 18 | | Sec. 16-176. To adopt actuarial assumptions. For the 5-year | 19 | | period ending
June 30, 1997 and every 5 years thereafter | 20 | | through June 30, 2012 , the actuary, as technical advisor,
shall | 21 | | make an actuarial
investigation into the mortality, service and | 22 | | compensation experience of the
members, annuitants, and | 23 | | beneficiaries of the retirement system. Based upon
the result | 24 | | of that investigation, the board shall adopt such
actuarial | 25 | | assumptions as it deems appropriate.
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| 1 | | Beginning with the 5-year period ending June 30, 2012 and | 2 | | every 5 years thereafter through June 30, 2012 , the actuarial | 3 | | investigation required under this Section shall include the | 4 | | System's experience under the early retirement without | 5 | | discount option established in Section 16-133.2, including | 6 | | consideration of the sufficiency of the member and employer | 7 | | contributions under Section 16-133.2 and the active member | 8 | | contribution under Section 16-152 to adequately fund the early | 9 | | retirement without discount option. The Board shall promptly | 10 | | communicate the results of the actuarial investigation to the | 11 | | Commission on Government Forecasting and Accountability. Based | 12 | | on the actuarial investigation, the Commission on Government | 13 | | Forecasting and Accountability shall, no later than February 1 | 14 | | of the next year, recommend to the General Assembly any | 15 | | proportional adjustment in the amounts of the member and | 16 | | employer contributions under Section 16-133.2 that it deems | 17 | | necessary. Except as provided in subsection (d) of Section | 18 | | 16-133.2, the If the General Assembly fails to adjust the | 19 | | member and employer contributions under Section 16-133.2 in | 20 | | response to the Commission's recommendations, then the early | 21 | | retirement without discount option under Section 16-133.2 is | 22 | | terminated as of July 1, 2013 and shall cease to be available | 23 | | at the end of the fiscal year in which the Commission made its | 24 | | recommendation to the General Assembly .
| 25 | | (Source: P.A. 94-4, eff. 6-1-05.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
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