State of Illinois
90th General Assembly
Legislation

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90_HB0376

      40 ILCS 5/17-116          from Ch. 108 1/2, par. 17-116
      40 ILCS 5/17-122          from Ch. 108 1/2, par. 17-122
      30 ILCS 805/8.21 new
          Amends the Chicago Teacher Article of the Pension Code to
      change the period used to determine average  salary,  from  4
      years  to  3 years.  Amends the State Mandates Act to require
      implementation without reimbursement.  Effective immediately.
                                                     LRB9000575EGfg
                                               LRB9000575EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections  17-116  and  17-122 and to amend the State Mandates
 3    Act.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.  The  Illinois  Pension  Code  is  amended by
 7    changing Sections 17-116 and 17-122 as follows:
 8        (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
 9        Sec. 17-116. Service retirement  pension.   Each  teacher
10    having  20 years of service upon attainment of age 55, or who
11    thereafter attains age 55 shall  be  entitled  to  a  service
12    retirement  pension  upon  or after attainment of age 55; and
13    each teacher in service on or after July 1, 1971, with  5  or
14    more  but  less than 20 years of service shall be entitled to
15    receive a service retirement pension upon or after attainment
16    of age 62.  Such pension is to be calculated as follows:
17        Beginning as of June 25,  1971,  the  service  retirement
18    pension for a teacher who retires on or after that such date,
19    at  age  60  or over, shall be 1.67% for each of the first 10
20    years of service; 1.90% for each of  the  next  10  years  of
21    service;  2.10%  for each year of service in excess of 20 but
22    not exceeding 30; and 2.30%  for  each  year  of  service  in
23    excess  of  30,  based upon average salary as herein defined.
24    When  computing  such  service   retirement   pensions,   the
25    following conditions shall apply:
26        1.  Average  salary  shall  consist of the average annual
27    rate of salary for the 3  4  consecutive years  of  validated
28    service within the last 10 years of service when such average
29    annual  rate  was  highest.   In the determination of average
30    salary for retirement allowance  purposes,  for  members  who
31    commenced  employment after August 31, 1979, that part of the
                            -2-                LRB9000575EGfg
 1    salary for any year  shall  be  excluded  which  exceeds  the
 2    annual  full-time  salary rate for the preceding year by more
 3    than 20%.  In the case of a member who  commenced  employment
 4    before  August  31,  1979  and who receives salary during any
 5    year after September 1, 1983 which exceeds  the  annual  full
 6    time salary rate for the preceding year by more than 20%, the
 7    Board  of  Education  or  employer  shall  pay to the Fund an
 8    amount equal to the present value of the  additional  service
 9    retirement  pension  resulting  from such excess salary.  The
10    present value of the additional  service  retirement  pension
11    shall  be  computed  by  the  Board on the basis of actuarial
12    tables adopted by the Board.  If a member elects to receive a
13    pension from this fund provided by Section 20-121, his salary
14    under  the  State  Universities  Retirement  System  and  the
15    Teachers' Retirement System of the State of Illinois shall be
16    considered in determining such average salary.  Amounts  paid
17    after  the  effective date of this amendatory Act of 1991 for
18    unused vacation time earned after that effective  date  shall
19    not under any circumstances be included in the calculation of
20    average  salary or the annual rate of salary for the purposes
21    of this Article.
22        2.  Proportionate credit shall  be  given  for  validated
23    service of less than one year.
24        3.  For retirement at age 60 or over the pension shall be
25    payable at the full rate.
26        4.  For separation from service below age 60 to a minimum
27    age  of  55,  the  pension shall be discounted at the rate of
28    1/2 of one per cent for  each  month  that  the  age  of  the
29    contributor is less than 60, but a teacher may elect to defer
30    the effective date of pension in order to eliminate or reduce
31    this  discount.  This discount shall not be applicable to any
32    participant who has at least 35 years of service on the  date
33    the retirement annuity begins.
34        5.  No  additional  pension  shall be granted for service
                            -3-                LRB9000575EGfg
 1    exceeding 45 years. Beginning June 26, 1971 no pension  shall
 2    exceed  the  greater  of  $1,500  per month or 75% of average
 3    salary as herein defined.
 4        6.  Service  retirement  pensions  shall  begin  on   the
 5    effective  date of resignation, retirement, the day following
 6    the close of the payroll period for which service credit  was
 7    validated,  or  the  time  the  person  resigning or retiring
 8    attains age  55,  or  on  a  date  elected  by  the  teacher,
 9    whichever shall be latest.
10    (Source: P.A. 86-1488.)
11        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
12        Sec. 17-122. Survivor's and children's pensions - Amount.
13    Upon  the death of a teacher who has completed at least 1 1/2
14    years of contributing service with either this  Fund  or  the
15    State   Universities   Retirement  System  or  the  Teachers'
16    Retirement System of the  State  of  Illinois,  provided  his
17    death  occurred  while  (a)  in active service covered by the
18    fund or during his first 18 months of  continuous  employment
19    without  a  break  in  service  under any other participating
20    system  as  defined  in  the  Illinois   Retirement   Systems
21    Reciprocal  Act  except  the  State  Universities  Retirement
22    System  and  the  Teachers' Retirement System of the State of
23    Illinois, (b) on a creditable leave  of  absence,  (c)  on  a
24    noncreditable  leave  of absence of no more than one year, or
25    (d) a pension was deferred or pending  provided  the  teacher
26    had  at  least  10 years of validated service credit, or upon
27    the  death  of  a  pensioner  otherwise  qualified  for  such
28    benefit, the surviving spouse and unmarried minor children of
29    the deceased teacher  under  age  18  shall  be  entitled  to
30    pensions,  under  the  conditions  stated  hereinafter.  Such
31    Survivor's and children's pensions  shall  be  based  on  the
32    average  of  the 3  4  highest consecutive years of salary in
33    the last 10 years of service or on  the  average  salary  for
                            -4-                LRB9000575EGfg
 1    total  service,  if  total  service  has been less than 3  4 
 2    years, according to the following percentages:
 3        30% of average salary or 50% of  the  retirement  pension
 4    earned  by  the  teacher, whichever is larger, subject to the
 5    prescribed maximum monthly payment, for  a  surviving  spouse
 6    alone on attainment of age 50;
 7        60%   of  average  salary  for  a  surviving  spouse  and
 8    eligible minor children of the deceased teacher.
 9        If no eligible spouse survives, or the  surviving  spouse
10    remarries,  or  the  parent  of  the children of the deceased
11    member is otherwise ineligible for a  survivor's  pension,  a
12    children's  pension  for eligible minor children under age 18
13    shall be paid to their parent or  legal  guardian  for  their
14    benefit according to the following percentages:
15        30% of average salary for one child;
16        60% of average salary for 2 or more children.
17        On  January  1,  1981,  any  survivor  or  child  who was
18    receiving a survivor's or children's  pension  on  or  before
19    January  1,  1971,  shall  have  his survivor's or children's
20    pension then being paid increased by 1% for  each  full  year
21    which has elapsed from the date the pension began. On January
22    1,  1982,  any  survivor  or  child whose pension began after
23    January 1, 1971, but before January 1, 1981, shall  have  his
24    survivor's or children's pension then being paid increased 1%
25    for  each  full  year  which  has  elapsed  from the date the
26    pension began. On January 1,  1987,  any  survivor  or  child
27    whose  pension began on or before January 1, 1977, shall have
28    the monthly survivor's or children's pension increased by  $1
29    for each full year which has elapsed since the pension began.
30        Beginning   January   1,   1990,   every  survivor's  and
31    children's pension shall be increased (1) on each  January  1
32    occurring  on or after the commencement of the pension if the
33    deceased teacher died while receiving a  retirement  pension,
34    or  (2)  in  other  cases,  on each January 1 occurring on or
                            -5-                LRB9000575EGfg
 1    after the  first  anniversary  of  the  commencement  of  the
 2    pension,  by  an  amount equal to 3% of the current amount of
 3    the pension, including all increases previously granted under
 4    this Article, notwithstanding Section 17-157.  Such increases
 5    shall apply without regard to whether  the  deceased  teacher
 6    was  in  service  on  or  after  the  effective  date of this
 7    amendatory Act of 1991, but shall not accrue for  any  period
 8    prior to January 1, 1990.
 9        Subject  to  the  minimum  established below, the maximum
10    amount of pension for a surviving spouse alone or  one  minor
11    child  shall  be  $400  per  month,  and the maximum combined
12    pensions for a surviving spouse and children of the  deceased
13    teacher  shall  be  $600  per month, with individual pensions
14    adjusted for all beneficiaries pro rata to conform with  this
15    limitation.    If   proration   is  unnecessary  the  minimum
16    survivor's and children's pensions shall be  $40  per  month.
17    The  minimum  total survivor's pension payable upon the death
18    of a contributor or annuitant which occurs after December 31,
19    1986, shall be 50% of the earned retirement pension  of  such
20    contributor or annuitant, calculated without early retirement
21    discount in the case of death in service.
22        On  death  after  retirement,  the  total  survivor's and
23    children's pensions shall not exceed the  monthly  retirement
24    or   disability   pension  paid  to  the  deceased  retirant.
25    Survivor's and children's benefits described in this  Section
26    shall apply to all service and disability pensioners eligible
27    for a pension as of July 1, 1981.
28    (Source: P.A. 86-273; 86-1488.)
29        Section  90.  The State Mandates Act is amended by adding
30    Section 8.21 as follows:
31        (30 ILCS 805/8.21 new)
32        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
                            -6-                LRB9000575EGfg
 1    and  8 of this Act, no reimbursement by the State is required
 2    for  the  implementation  of  any  mandate  created  by  this
 3    amendatory Act of 1997.
 4        Section 99. Effective date.  This Act takes  effect  upon
 5    becoming law.

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