State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Enrolled ][ House Amendment 001 ]

91_SB0055eng

 
SB55 Engrossed                                 LRB9100709EGfg

 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections 16-129.1, 16-133, and 16-133.2.

 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 Sections 16-129.1, 16-133, and 16-133.2 as follows:

 7        (40 ILCS 5/16-129.1)
 8        Sec. 16-129.1.  Optional increase in retirement annuity.
 9        (a)  A member of the System may qualify for the augmented
10    rate  under  subdivision  (a)(B)(1) of Section 16-133 for all
11    years of creditable service earned before  July  1,  1998  by
12    making the optional contribution specified in subsection (b).
13    A  member may not elect to qualify for the augmented rate for
14    only a portion of his or her creditable service earned before
15    July 1, 1998.
16        (b)  The contribution shall be an amount equal to 1.0% of
17    the member's highest salary rate in the 4 consecutive  school
18    years  immediately prior to but not including the school year
19    in which the application occurs, multiplied by the number  of
20    years  of creditable service earned by the member before July
21    1, 1998 or 20, whichever is less.  This contribution shall be
22    reduced by 1.0% of that salary rate for every 3 full years of
23    creditable service earned by the member after June 30,  1998.
24    The  contribution shall be further reduced at the rate of 25%
25    of the contribution (as reduced for service  after  June  30,
26    1998)  for each year of the member's total creditable service
27    in excess of 34 years.  The contribution  shall  not  in  any
28    event exceed 20% of that salary rate.
29        The  member  shall  pay  to  the System the amount of the
30    contribution as calculated at the time of  application  under
31    this  Section.   The  amount  of  the contribution determined
 
SB55 Engrossed              -2-                LRB9100709EGfg
 1    under this subsection shall be recalculated at  the  time  of
 2    retirement, and if the System determines that the amount paid
 3    by  the  member  exceeds  the recalculated amount, the System
 4    shall refund  the  difference  to  the  member  with  regular
 5    interest from the date of payment to the date of refund.
 6        The  contribution  required  by  this subsection shall be
 7    paid in one of the following ways or in a combination of  the
 8    following ways that does not extend over more than 5 years:
 9             (i)  in  a  lump  sum  on  or  before  the  date  of
10        retirement;
11             (ii)  in  substantially  equal  installments  over a
12        period of time not to exceed 5 years, as a deduction from
13        salary in  accordance  with  subsection  (b)  of  Section
14        16-154;
15             (iii)  if  the  member  becomes  an annuitant before
16        June   30,   2003,   in   substantially   equal   monthly
17        installments over a  24-month  period,  by  reducing  the
18        annuitant's monthly benefit over a 24-month period by the
19        amount  of  the  otherwise  applicable contribution.  For
20        federal and Illinois tax purposes, the monthly amount  by
21        which  the  annuitant's  benefit  is reduced shall not be
22        treated as a contribution by the annuitant, but rather as
23        a reduction of the annuitant's monthly benefit.
24        (c)  If the member fails to make  the  full  contribution
25    under  this  Section  in  a timely fashion, the payments made
26    under this Section shall be refunded to the  member,  without
27    interest.    If  the  member  dies  before  making  the  full
28    contribution, the payments made under this Section,  together
29    with  regular  interest  thereon,  shall  be  refunded to the
30    member's designated beneficiary for  benefits  under  Section
31    16-138.
32        (d)  For   purposes   of  this  Section  and  subdivision
33    (a)(B)(1) of  Section  16-133,  optional  creditable  service
34    established  by  a member shall be deemed to have been earned
 
SB55 Engrossed              -3-                LRB9100709EGfg
 1    at the time of the employment or other qualifying event  upon
 2    which  the  service  is  based,  rather  than at the time the
 3    credit was established in this System.
 4        (e)  The contributions required under  this  Section  are
 5    the  responsibility  of  the  teacher  and  not the teacher's
 6    employer.  However, an employer of teachers  may,  after  the
 7    effective  date  of this amendatory Act of 1998, specifically
 8    agree, through collective bargaining or  otherwise,  to  make
 9    the contributions required by this Section on behalf of those
10    teachers.
11    (Source: P.A. 90-582, eff. 5-27-98.)

12        (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
13        Sec. 16-133.  Retirement annuity; amount.
14        (a)  The  amount  of  the retirement annuity shall be the
15    larger of the amounts determined under paragraphs (A) and (B)
16    below:
17             (A)  An  amount  consisting  of  the  sum   of   the
18        following:
19                  (1)  An  amount  that  can  be  provided  on an
20             actuarially  equivalent  basis   by   the   member's
21             accumulated contributions at the time of retirement;
22             and
23                  (2)  The  sum  of  (i)  the  amount that can be
24             provided on an actuarially equivalent basis  by  the
25             member's   accumulated   contributions  representing
26             service prior to July 1, 1947, and (ii)  the  amount
27             that  can  be  provided on an actuarially equivalent
28             basis by the  amount  obtained  by  multiplying  1.4
29             times   the   member's   accumulated   contributions
30             covering service subsequent to June 30, 1947; and
31                  (3)  If  there  is  prior  service, 2 times the
32             amount  that  would  have  been   determined   under
33             subparagraph  (2)  of paragraph (A) above on account
 
SB55 Engrossed              -4-                LRB9100709EGfg
 1             of contributions which would have been  made  during
 2             the period of prior service creditable to the member
 3             had  the System been in operation and had the member
 4             made  contributions  at  the  contribution  rate  in
 5             effect prior to July 1, 1947.
 6             (B)  An amount consisting  of  the  greater  of  the
 7        following:
 8                  (1)  For  creditable service earned before July
 9             1, 1998 that has not been  augmented  under  Section
10             16-129.1:  1.67% of final average salary for each of
11             the  first  10 years of creditable service, 1.90% of
12             final average salary for each year in excess  of  10
13             but  not exceeding 20, 2.10% of final average salary
14             for each year in excess of 20 but not exceeding  30,
15             and  2.30%  of final average salary for each year in
16             excess of 30; and
17                  For creditable service earned on or after  July
18             1,  1998 by a member who has at least 24 30 years of
19             creditable service on July 1, 1998 and who does  not
20             elect  to  augment  service  under Section 16-129.1:
21             2.2% of  final  average  salary  for  each  year  of
22             creditable  service  earned on or after July 1, 1998
23             but before the member reaches a total of 30 years of
24             creditable service and 2.3% of final average  salary
25             for  each  year  of  creditable service earned on or
26             after July 1, 1998 and after the  member  reaches  a
27             total of 30 years of creditable service; and
28                  For  all  other  creditable  service:   2.2% of
29             final average salary for  each  year  of  creditable
30             service; or
31                  (2)  1.5% of final average salary for each year
32             of creditable service plus the sum $7.50 for each of
33             the first 20 years of creditable service.
34        The  amount  of  the  retirement annuity determined under
 
SB55 Engrossed              -5-                LRB9100709EGfg
 1        this paragraph (B) shall be reduced by 1/2 of 1% for each
 2        month that the member is less than age 60 at the time the
 3        retirement annuity begins.  However, this reduction shall
 4        not apply (i) if the member has  at  least  35  years  of
 5        creditable  service,  or  (ii)  if  the member retires on
 6        account of disability  under  Section  16-149.2  of  this
 7        Article with at least 20 years of creditable service.
 8        (b)  For  purposes  of this Section, final average salary
 9    shall be the average salary for  the  highest  4  consecutive
10    years  within  the  last  10  years  of creditable service as
11    determined under rules  of  the  board.   The  minimum  final
12    average salary shall be considered to be $2,400 per year.
13        In  the determination of final average salary for members
14    other than elected officials and their appointees  when  such
15    appointees  are  allowed  by statute, that part of a member's
16    salary for any year  beginning  after  June  30,  1979  which
17    exceeds  the  member's  annual full-time salary rate with the
18    same employer for the preceding year by more than  20%  shall
19    be excluded.
20        (c)  In  determining the amount of the retirement annuity
21    under paragraph (B) of this Section, a fractional year  shall
22    be granted proportional credit.
23        (d)  The  retirement  annuity  determined under paragraph
24    (B) of this Section shall be available only  to  members  who
25    render  teaching  service after July 1, 1947 for which member
26    contributions are required, and to  annuitants  who  re-enter
27    under the provisions of Section 16-150.
28        (e)  The   maximum   retirement  annuity  provided  under
29    paragraph (B) of this Section shall be 75% of  final  average
30    salary.
31        (f)  A  member  retiring after the effective date of this
32    amendatory Act of 1998 shall receive a pension equal  to  75%
33    of final average salary if the member is qualified to receive
34    a retirement annuity equal to at least 74.6% of final average
 
SB55 Engrossed              -6-                LRB9100709EGfg
 1    salary  under this Article or as proportional annuities under
 2    Article 20 of this Code.
 3    (Source: P.A. 90-582, eff. 5-27-98.)

 4        (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
 5        Sec. 16-133.2.  Early  retirement  without  discount.   A
 6    member retiring after June 1, 1980 and on or before June 30,
 7    2005  2000,  and  applying  for a retirement annuity within 6
 8    months of the last  day  of  teaching  for  which  retirement
 9    contributions  were  required,  may  elect  at  the  time  of
10    application  for  a  retirement  annuity,  to make a one time
11    member contribution to  the  System  and  thereby  avoid  the
12    reduction in the retirement annuity for retirement before age
13    60  specified  in  paragraph  (B)  of  Section  16-133.   The
14    exercise  of  the  election  shall  also  obligate  the  last
15    employer  to  make  a one time non-refundable contribution to
16    the System.  Substitute teachers  wishing  to  exercise  this
17    election  must  teach 85 or more days in one school term with
18    one employer, who shall  be  deemed  the  last  employer  for
19    purposes of this Section.  The last day of teaching with that
20    employer  must  be within 6 months of the date of application
21    for  retirement.   All  substitute  teaching  credit  applied
22    toward the required 85 days must be  earned  after  June  30,
23    1990.
24        The one time member and employer contributions shall be a
25    percentage  of  the  retiring  member's highest annual salary
26    rate used in the determination  of  the  average  salary  for
27    retirement  annuity  purposes.  However, when determining the
28    one-time member and employer contributions, that  part  of  a
29    member's  salary  with  the  same  employer which exceeds the
30    annual salary rate for the preceding year by  more  than  20%
31    shall  be  excluded.  The member contribution shall be at the
32    rate of 7% for the lesser of the following  2  periods:   (1)
33    for each year that the member is less than age 60; or (2) for
 
SB55 Engrossed              -7-                LRB9100709EGfg
 1    each  year  that the member's creditable service is less than
 2    35 years.  If a member is at least age 55 and has at least 34
 3    years  of  creditable  service,   no   member   or   employer
 4    contribution   for  the  early  retirement  option  shall  be
 5    required.  The employer contribution shall be at the rate  of
 6    20% for each year the member is under age 60.
 7        Upon  receipt of the application and election, the System
 8    shall  determine  the  one   time   employee   and   employer
 9    contributions  required.   The  member  contribution shall be
10    credited to the individual account  of  the  member  and  the
11    employer  contribution  shall  be  credited to the Employer's
12    Contribution Reserve.  The provisions of this  Section  shall
13    not  be  applicable  until the member's contribution, if any,
14    has all the above outlined contributions have  been  received
15    by  the  System;  however,  the  date  such contributions are
16    received shall not be considered in determining the effective
17    date of retirement.
18        The number of members working for a single  employer  who
19    may  retire  under this Section in any year may be limited at
20    the option of the employer to a specified percentage of those
21    eligible, not less than 30%, with the right to participate to
22    be allocated among those applying on the basis  of  seniority
23    in the service of the employer.
24    (Source: P.A. 89-10, eff. 3-31-95; 90-582, eff. 5-27-98.)

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

[ Top ]