[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
92_SB0278
LRB9204695EGfg
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 adding Section 17-116.2 as follows:
6 (40 ILCS 5/17-116.2 new)
7 Sec. 17-116.2. Early retirement incentives; persons
8 receiving grievance backpay award.
9 (a) This Section applies only to a teacher who (i)
10 applied for retirement on June 12, 1998 and resigned
11 effective June 15, 1998, (ii) as a result of grievance
12 proceedings received a backpay award of approximately
13 $38,906, and (iii) applies to the Fund in writing within 90
14 days following the effective date of this amendatory Act of
15 the 92nd General Assembly for the benefits provided under
16 this Section.
17 (b) Notwithstanding Section 1-103.1, Section 17-157, or
18 any other provision of this Article, an eligible person who
19 applies for the benefits provided by this Section shall have
20 his or her retirement pension recalculated within 60 days
21 following the date of application for the benefits of this
22 Section. The recalculated pension shall begin to accrue, and
23 the person shall be deemed to have retired, on October 1,
24 1994. The recalculated pension shall be based on the
25 retirement formulas and other provisions of this Article in
26 effect on October 1, 1994, except that it shall include any
27 additional credits or earnings established under this
28 Section, including any creditable service and age enhancement
29 established under subsection (d). The difference between the
30 recalculated amount of pension (including any applicable
31 annual increases) and the retirement pension actually
-2- LRB9204695EGfg
1 received between October 1, 1994 and the date of
2 recalculation, minus any amount to be deducted under
3 subsection (f), shall be paid to the pensioner in a lump sum
4 within 60 days following the date of recalculation.
5 (c) An eligible person who applies for the benefits
6 provided under this Section shall be entitled to have the
7 backpay award received under a grievance procedure considered
8 in the determination of salary for the purposes of
9 recalculating his or her retirement pension under this
10 Section.
11 An eligible person who applies for the benefits provided
12 under this Section shall be entitled to have any additional
13 service credit received as a result of a grievance procedure
14 or other administrative determination counted in the
15 determination of creditable service for purposes of
16 recalculating his or her retirement pension under this
17 Section.
18 (d) In recognition of a lost opportunity to participate
19 in an early retirement program under this Article, an
20 eligible person who applies for the benefits provided under
21 this Section may establish up to 5 years of additional
22 creditable service under this subsection. In addition, for
23 each period of creditable service established under this
24 subsection, a person's age at retirement shall be deemed to
25 be increased by an equal period.
26 The creditable service established under this subsection
27 may be used for all purposes under this Article and the
28 Retirement Systems Reciprocal Act, except for the purposes of
29 Section 17-116.1 and the determination of average salary or
30 compensation under this or any other Article of this Code.
31 The age enhancement established under this subsection may
32 be used for all purposes under this Article (including
33 calculation of a proportionate pension payable by this Fund
34 under the Retirement Systems Reciprocal Act), except for
-3- LRB9204695EGfg
1 purposes of the reversionary pension under Section 17-120,
2 and distributions required by federal law on account of age.
3 However, age enhancement established under this subsection
4 shall not be used in determining benefits payable under other
5 Articles of this Code under the Retirement Systems Reciprocal
6 Act.
7 This subsection (d) does not apply to any person who has
8 received any early retirement incentive under Section
9 17-116.1, 17-116.3, 17-116.4, 17-116.5, or 17-116.6.
10 (e) For all creditable service established under
11 subsection (d), the employer must pay to the Fund an employer
12 contribution consisting of 12% of the member's highest annual
13 full-time rate of compensation for each year of creditable
14 service granted under subsection (d).
15 The employer contribution shall be paid to the Fund in a
16 single sum within 6 months after the effective date of this
17 amendatory Act of the 92nd General Assembly. The employer's
18 failure to make the required contributions in a timely manner
19 shall obligate the employer to pay interest to the Fund at
20 the rate of 10% per year, compounded annually, but shall not
21 affect the payment of the retirement pension.
22 (f) For all creditable service established under
23 subsection (d), the employee must pay to the Fund an employee
24 contribution consisting of 4% of the member's highest annual
25 salary rate used in the determination of the retirement
26 pension for each year of creditable service granted under
27 this Section. The employee contribution shall be deducted
28 from the retirement annuity in 24 monthly installments.
29 (g) An annuitant who has received any age enhancement or
30 creditable service under subsection (d) and whose pension is
31 suspended or cancelled under Section 17-149 or 17-150 shall
32 thereby forfeit that age enhancement and creditable service.
33 The forfeiture of creditable service under this subsection
34 shall not entitle the employer to a refund of the employer
-4- LRB9204695EGfg
1 contribution paid under subsection (e), nor to forgiveness of
2 any part of that contribution that remains unpaid. The
3 forfeiture of creditable service under this subsection shall
4 not entitle the employee to a refund of the employee
5 contribution paid under subsection (f).
6 Section 90. The State Mandates Act is amended by adding
7 Section 8.25 as follows:
8 (30 ILCS 805/8.25 new)
9 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
10 and 8 of this Act, no reimbursement by the State is required
11 for the implementation of any mandate created by this
12 amendatory Act of the 92nd General Assembly.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.