[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
92_HB1716
LRB9207739EGfg
1 AN ACT in relation to public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Section 17-116.4 as follows:
6 (40 ILCS 5/17-116.4)
7 Sec. 17-116.4. Early retirement incentives.
8 (a) A teacher who is covered by a collective bargaining
9 agreement shall not be eligible for the early retirement
10 incentives provided under this Section unless the collective
11 bargaining agent and the Board of Education have entered into
12 an agreement under which the agent agrees that any payment
13 for accumulated unused sick days to which the employee is
14 entitled upon withdrawal from service may be paid by the
15 Board of Education in installments over a period of up to 5
16 years, and a copy of this agreement has been filed with the
17 Board of the Fund.
18 To be eligible for the benefits provided in this Section,
19 a person must:
20 (1) be a member of this Fund who, on or after May
21 1, 1994, is (i) in active payroll status as a teacher, or
22 (ii) on layoff status from such a position with a right
23 of re-employment or recall to service, or (iii) on leave
24 of absence from such a position, but only if the member
25 on leave has not been receiving a disability benefit
26 under this Article for a continuous period of 2 years or
27 more as of the date of application;
28 (2) have not previously received a retirement
29 pension under this Article;
30 (3) file with the Board and the Board of Education,
31 before March 1, 1994, a written application requesting
-2- LRB9207739EGfg
1 the benefits provided in this Section and a notice of
2 resignation from employment, which resignation must take
3 effect no earlier than June 1, 1994 and no later than
4 September 1, 1994 unless the applicant's retirement is
5 delayed under subsection (e) of this Section;
6 (4) be eligible to receive a retirement pension
7 under this Article (for which purpose any age enhancement
8 or creditable service received under this Section may be
9 used) and elect to receive the retirement pension
10 beginning no earlier than June 1, 1994 and no later than
11 September 1, 1994 or the date established under
12 subsection (e) of this Section, if applicable;
13 (5) have attained age 50 (without the use of any
14 age enhancement or creditable service received under this
15 Section) after September 1, 1993 and no later than
16 September 1, 1994;
17 (6) have at least 5 years of creditable service
18 under this Fund or any of the participating systems under
19 the Retirement Systems Reciprocal Act (without the use of
20 any creditable service received under this Section) by
21 the effective date of the retirement pension.
22 (b) An eligible person may establish up to 5 years of
23 creditable service under this Section. In addition, for each
24 period of creditable service established under this Section,
25 a person's age at retirement shall be deemed to be increased
26 by an equal period.
27 The creditable service established under this Section may
28 be used for all purposes under this Article and the
29 Retirement Systems Reciprocal Act, except for the purposes of
30 Section 17-116.1, and the determination of average salary or
31 compensation under this or any other Article of this Code.
32 The age enhancement established under this Section may be
33 used for all purposes under this Article (including
34 calculation of a proportionate pension payable by this Fund
-3- LRB9207739EGfg
1 under the Retirement Systems Reciprocal Act), except for
2 purposes of the reversionary pension under Section 17-120,
3 and distributions required by federal law on account of age.
4 However, age enhancement established under this Section shall
5 not be used in determining benefits payable under other
6 Articles of this Code under the Retirement Systems Reciprocal
7 Act.
8 (c) For all creditable service established under this
9 Section, the employer must pay to the Fund an employer
10 contribution consisting of 12% of the member's highest annual
11 full-time rate of compensation for each year of creditable
12 service granted under this Section.
13 The employer contribution shall be paid to the Fund in
14 one of the following ways: (i) in a single sum at the time
15 of the member's retirement, (ii) in equal quarterly
16 installments over a period of 5 years from the date of
17 retirement, or (iii) subject to the approval of the Board of
18 the Fund, in unequal installments over a period of no more
19 than 5 years from the date of retirement, as provided in a
20 payment plan designed by the Fund to accommodate the needs of
21 the employer. The employer's failure to make the required
22 contributions in a timely manner shall not affect the payment
23 of the retirement pension.
24 For all creditable service established under this
25 Section, the employee must pay to the Fund an employee
26 contribution consisting of 4% of the member's highest annual
27 salary rate used in the determination of the retirement
28 pension for each year of creditable service granted under
29 this Section. The employee contribution shall be deducted
30 from the retirement annuity in 24 monthly installments.
31 (d) An annuitant who has received any age enhancement or
32 creditable service under this Section and whose pension is
33 suspended or cancelled under Section 17-149 or 17-150 shall
34 thereby forfeit the age enhancement and creditable service.
-4- LRB9207739EGfg
1 The forfeiture of creditable service under this subsection
2 shall not entitle the employer to a refund of the employer
3 contribution paid under this Section, nor to forgiveness of
4 any part of that contribution that remains unpaid. The
5 forfeiture of creditable service under this subsection shall
6 not entitle the employee to a refund of the employee
7 contribution paid under this Section.
8 (e) If the number of employees of an employer that apply
9 for early retirement under this Section exceeds 30% of those
10 eligible, the employer may require that, for any or all of
11 the number of applicants in excess of that 30%, the starting
12 date of the retirement pension enhanced under this Section be
13 no earlier than June 1, 1995 and no later than September 1,
14 1995. The right to have the retirement pension begin before
15 June 1, 1995 shall be allocated among the applicants on the
16 basis of seniority in the service of that employer.
17 This delay applies only to persons who are applying for
18 early retirement incentives under this Section, and does not
19 prevent a person whose application for early retirement
20 incentives has been withdrawn from beginning to receive a
21 retirement pension on the earliest date upon which the person
22 is otherwise eligible under this Article.
23 (f) A member who receives any early retirement incentive
24 under Section 17-116.3 may not receive any early retirement
25 incentive under this Section.
26 (g) Notwithstanding Section 17-157, a person who is
27 receiving early retirement benefits under this Section may
28 establish service credit for a period of up to 3 weeks during
29 the month of January, 1968, during which the person was
30 prevented from working due to civil unrest or a wildcat
31 strike. A person wishing to establish this credit must apply
32 in writing to the Board within 30 days after the effective
33 date of this amendatory Act of the 92nd General Assembly and
34 pay to the Fund an employee contribution calculated at the
-5- LRB9207739EGfg
1 rate and salary applicable to the employee at the time for
2 which credit is being established, without interest. When a
3 person establishes additional service credit under this
4 subsection, the Fund shall recalculate the annuity originally
5 granted under this Section to reflect the additional credit
6 and shall pay to the annuitant in a lump sum the difference
7 between the annuity payments paid before the date of the
8 recalculation and the recalculated amount of those payments.
9 (Source: P.A. 88-85.)
10 Section 90. The State Mandates Act is amended by adding
11 Section 8.25 as follows:
12 (30 ILCS 805/8.25 new)
13 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
14 and 8 of this Act, no reimbursement by the State is required
15 for the implementation of any mandate created by this
16 amendatory Act of the 92nd General Assembly.
17 Section 99. Effective date. This Act takes effect upon
18 becoming law.