[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_SB1258
LRB9109164EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 16-129.1
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 16-129.1 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
-2- LRB9109164EGfg
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
-3- LRB9109164EGfg
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 (f) A person who, on or after July 1, 1998 and before
12 June 4, 1999, began receiving a retirement annuity calculated
13 at the augmented rate may apply in writing to have the
14 annuity recalculated to reflect the changes to this Section
15 and Section 16-133 that were enacted in Public Act 91-17.
16 The amount of any resulting decrease in the optional
17 contribution shall be refunded to the annuitant, without
18 interest. Any resulting increase in retirement annuity shall
19 take effect on the next annuity payment date following the
20 date of application under this subsection.
21 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.