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1 | AN ACT in relation to public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Section 17-116
as follows:
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6 | (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
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7 | Sec. 17-116. Service retirement pension.
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8 | (a) Each teacher having 20 years of service upon attainment | ||||||||||||||||||||||||||
9 | of age 55,
or who thereafter attains age 55 shall be entitled | ||||||||||||||||||||||||||
10 | to a service retirement
pension upon or after attainment of age | ||||||||||||||||||||||||||
11 | 55; and each teacher in service on or
after July 1, 1971, with | ||||||||||||||||||||||||||
12 | 5 or more but less than 20 years of service shall be
entitled | ||||||||||||||||||||||||||
13 | to receive a service retirement pension upon or after | ||||||||||||||||||||||||||
14 | attainment of
age 62. Each teacher in service on or after July | ||||||||||||||||||||||||||
15 | 1, 2009 with 10 or more but
less than 20 years of service shall | ||||||||||||||||||||||||||
16 | be entitled to receive a service retirement
pension upon or | ||||||||||||||||||||||||||
17 | after attainment of age 60.
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18 | (b) The service retirement pension
for a teacher who | ||||||||||||||||||||||||||
19 | retires on or after June 25, 1971, at age
60 or over, shall be | ||||||||||||||||||||||||||
20 | calculated as follows:
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21 | (1) For creditable service earned before July 1, 1998 | ||||||||||||||||||||||||||
22 | that has not been
augmented under Section 17-119.1: 1.67% | ||||||||||||||||||||||||||
23 | for each of the first 10 years
of service; 1.90% for each |
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1 | of the next 10 years of service; 2.10% for
each year of | ||||||
2 | service in excess of 20 but not exceeding 30; and 2.30% for
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3 | each year of service in excess of 30, based upon average | ||||||
4 | salary as
herein defined.
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5 | (2) For creditable service earned on or after July 1, | ||||||
6 | 1998 by a member
who has at least 30 years of creditable | ||||||
7 | service on July 1, 1998 and who does
not elect to augment | ||||||
8 | service under Section 17-119.1: 2.3% of average salary
for | ||||||
9 | each year of creditable service earned on or after July 1, | ||||||
10 | 1998.
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11 | (3) For all other creditable service: 2.2% of average | ||||||
12 | salary
for each year of creditable service.
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13 | (c) When computing such service retirement pensions, the
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14 | following conditions shall apply:
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15 | 1. Average salary shall consist of the average annual | ||||||
16 | rate of salary
for the 4 consecutive years of validated | ||||||
17 | service within the last 10 years
of service when such | ||||||
18 | average annual rate was highest. In the determination
of | ||||||
19 | average salary for retirement allowance purposes, for | ||||||
20 | members who
commenced employment after August 31, 1979, | ||||||
21 | that part of the salary for any
year shall be excluded | ||||||
22 | which exceeds the annual full-time salary rate for
the | ||||||
23 | preceding year by more than 20%. In the case of a member | ||||||
24 | who commenced
employment before August 31, 1979 and who | ||||||
25 | receives salary during any year
after September 1, 1983 | ||||||
26 | which exceeds the annual full time salary rate for
the |
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1 | preceding year by more than 20%,
an Employer and other | ||||||
2 | employers of
eligible contributors as defined in Section | ||||||
3 | 17-106
shall pay to the Fund an amount equal to the present | ||||||
4 | value of the
additional service retirement pension | ||||||
5 | resulting from such excess salary.
The present value of the | ||||||
6 | additional service retirement pension shall be
computed by | ||||||
7 | the Board on the basis of actuarial tables adopted by the
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8 | Board. If a member elects to receive a pension from this | ||||||
9 | Fund
provided by
Section 20-121, his salary under the State | ||||||
10 | Universities Retirement System
and the Teachers' | ||||||
11 | Retirement System of the State of Illinois shall be
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12 | considered in determining such average salary. Amounts | ||||||
13 | paid after the
effective date of this amendatory Act of | ||||||
14 | 1991 for unused vacation time
earned after that effective | ||||||
15 | date shall not under any circumstances be
included in the | ||||||
16 | calculation of average salary or the annual rate of salary
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17 | for the purposes of this Article.
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18 | 2. Proportionate credit shall be given for validated | ||||||
19 | service of less
than one year.
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20 | 3. For retirement at age 60 or over the pension shall | ||||||
21 | be payable at
the full rate.
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22 | 4. For separation from service below age 60 to a | ||||||
23 | minimum age of 55,
the pension shall be discounted at the | ||||||
24 | rate of 1/2 of one per cent for
each month that the age of | ||||||
25 | the contributor is less than 60, but a
teacher may elect to | ||||||
26 | defer the effective date of pension in order to
eliminate |
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1 | or reduce this discount. This discount shall not be | ||||||
2 | applicable
to any participant who has at least 34 years of | ||||||
3 | service or a
retirement pension of at least 74.6% of | ||||||
4 | average salary on the date the
retirement annuity begins.
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5 | 5. No additional pension shall be granted for service | ||||||
6 | exceeding 45
years. Beginning June 26, 1971 no pension | ||||||
7 | shall exceed the greater of
$1,500 per month or 75% of | ||||||
8 | average salary as herein defined.
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9 | 6. Service retirement pensions shall begin on the | ||||||
10 | effective date of
resignation, retirement, the day | ||||||
11 | following the close of the payroll
period for which service | ||||||
12 | credit was validated, or the time the person
resigning or | ||||||
13 | retiring attains age 55, or on a date elected by the
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14 | teacher, whichever shall be latest.
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15 | 7. A member who is eligible to receive a retirement | ||||||
16 | pension of at least
74.6% of average salary and will attain | ||||||
17 | age 55 on or before December 31
during the year which | ||||||
18 | commences on July 1 shall be deemed to attain age 55 on
the | ||||||
19 | preceding June 1.
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20 | 8. A member retiring after the effective date of this | ||||||
21 | amendatory Act
of 1998 shall receive a pension equal to 75% | ||||||
22 | of average salary if the
member is qualified to receive a | ||||||
23 | retirement pension equal to at least 74.6%
of average | ||||||
24 | salary under this Article or as proportional annuities | ||||||
25 | under
Article 20 of this Code.
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26 | (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
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1 | Section 90. The State Mandates Act is amended by adding | ||||||
2 | Section 8.33 as follows:
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3 | (30 ILCS 805/8.33 new) | ||||||
4 | Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
5 | of this Act, no reimbursement by the State is required for the | ||||||
6 | implementation of any mandate created by this amendatory Act of | ||||||
7 | the 96th General Assembly.
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 |