State of Illinois
91st General Assembly
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91_HB0344

 
                                               LRB9100691EGfg

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Section 17-116 and to amend the State Mandates Act.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.  The  Illinois  Pension  Code  is  amended by
 6    changing Section 17-116 as follows:

 7        (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
 8        Sec. 17-116. Service retirement pension.
 9        (a)  Each  teacher  having  20  years  of  service   upon
10    attainment  of age 55, or who thereafter attains age 55 shall
11    be entitled to a service retirement  pension  upon  or  after
12    attainment of age 55; and each teacher in service on or after
13    July  1,  1971,  with  5  or  more  but less than 20 years of
14    service shall be entitled to  receive  a  service  retirement
15    pension upon or after attainment of age 62.
16        (b)  The  service  retirement  pension  for a teacher who
17    retires on or after June 25, 1971, at age 60 or  over,  shall
18    be calculated as follows:
19             (1)  For  creditable  service  earned before July 1,
20        1998 that has not been augmented under Section  17-119.1:
21        1.67%  for  each  of the first 10 years of service; 1.90%
22        for each of the next 10 years of service; 2.10% for  each
23        year of service in excess of 20 but not exceeding 30; and
24        2.30%  for  each  year  of service in excess of 30, based
25        upon average salary as herein defined.
26             (2)  For creditable service earned on or after  July
27        1,  1998  by  a  member  who  has  at  least  30 years of
28        creditable service on July 1, 1998 and who does not elect
29        to augment  service  under  Section  17-119.1:   2.3%  of
30        average salary for each year of creditable service earned
31        on or after July 1, 1998.
 
                            -2-                LRB9100691EGfg
 1             (3)  For  all  other  creditable  service:   2.2% of
 2        average salary for each year of creditable service.
 3        (c)  When computing such service retirement pensions, the
 4    following conditions shall apply:
 5             1.  Average salary  shall  consist  of  the  average
 6        annual  rate  of  salary  for  the 4 consecutive years of
 7        validated service within the last  10  years  of  service
 8        when  such  average  annual  rate  was  highest.   In the
 9        determination of average salary for retirement  allowance
10        purposes,  for  members  who  commenced  employment after
11        August 31, 1979, that part of the  salary  for  any  year
12        shall  be  excluded  which  exceeds  the annual full-time
13        salary rate for the preceding year by more than 20%.   In
14        the  case  of  a  member  who commenced employment before
15        August 31, 1979 and who receives salary during  any  year
16        after  September  1,  1983  which exceeds the annual full
17        time salary rate for the preceding year by more than 20%,
18        an Employer and other employers of eligible  contributors
19        as  defined  in  Section  17-106 shall pay to the Fund an
20        amount equal to  the  present  value  of  the  additional
21        service  retirement  pension  resulting  from such excess
22        salary.  The present  value  of  the  additional  service
23        retirement  pension shall be computed by the Board on the
24        basis of actuarial tables adopted by  the  Board.   If  a
25        member  elects  to  receive  a  pension  from  this  Fund
26        provided  by  Section  20-121, his salary under the State
27        Universities  Retirement   System   and   the   Teachers'
28        Retirement  System  of  the  State  of  Illinois shall be
29        considered in determining such average  salary.   Amounts
30        paid  after  the effective date of this amendatory Act of
31        1991 for unused vacation time earned after that effective
32        date shall not under any circumstances be included in the
33        calculation of average  salary  or  the  annual  rate  of
34        salary for the purposes of this Article.
 
                            -3-                LRB9100691EGfg
 1             2.  Proportionate   credit   shall   be   given  for
 2        validated service of less than one year.
 3             3.  For retirement at age 60  or  over  the  pension
 4        shall be payable at the full rate.
 5             4.  For  separation  from  service below age 60 to a
 6        minimum age of 55, the pension shall be discounted at the
 7        rate of 0.5% 1/2 of one per cent for each month that  the
 8        age of the contributor is less than 60, but a teacher may
 9        elect  to defer the effective date of pension in order to
10        eliminate or reduce this discount.  This  discount  shall
11        not be applicable to any participant who has at least 30
12        34  years  of service or a retirement pension of at least
13        74.6% of  average  salary  on  the  date  the  retirement
14        annuity begins.
15             5.  No  additional  pension  shall  be  granted  for
16        service  exceeding  45 years.  Beginning June 26, 1971 no
17        pension shall exceed the greater of $1,500 per  month  or
18        75% of average salary as herein defined.
19             6.  Service  retirement  pensions shall begin on the
20        effective  date  of  resignation,  retirement,  the   day
21        following  the  close  of  the  payroll  period for which
22        service credit was validated,  or  the  time  the  person
23        resigning  or  retiring  attains  age  55,  or  on a date
24        elected by the teacher, whichever shall be latest.
25             7.  A member who is eligible to receive a retirement
26        pension of at least 74.6%  of  average  salary  and  will
27        attain  age  55  on or before December 31 during the year
28        which commences on July 1 shall be deemed to  attain  age
29        55 on the preceding June 1.
30             8.  A  member  retiring  after the effective date of
31        this amendatory Act of 1998 shall receive a pension equal
32        to 75% of average salary if the member  is  qualified  to
33        receive  a  retirement pension equal to at least 74.6% of
34        average salary under  this  Article  or  as  proportional
 
                            -4-                LRB9100691EGfg
 1        annuities under Article 20 of this Code.
 2    (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)

 3        Section  90.  The State Mandates Act is amended by adding
 4    Section 8.23 as follows:

 5        (30 ILCS 805/8.23 new)
 6        Sec. 8.23. Exempt mandate.   Notwithstanding  Sections  6
 7    and  8 of this Act, no reimbursement by the State is required
 8    for  the  implementation  of  any  mandate  created  by  this
 9    amendatory Act of the 91st General Assembly.

10        Section 99. Effective date.  This Act takes  effect  upon
11    becoming law.

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