HB3220ham001 100TH GENERAL ASSEMBLY

Rep. Elaine Nekritz

Filed: 4/6/2017

10000HB3220ham001 LRB100 10077 RPS 24247 a

AMENDMENT TO HOUSE BILL 3220

AMENDMENT NO. ______. Amend House Bill 3220 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Pension Code is amended by adding Sections 16-133.6 and 17-116.7 as follows:

(40 ILCS 5/16-133.6 new)

Sec. 16-133.6. Early retirement incentive for teachers.

(a) This Section provides an age enhancement as an early retirement incentive for certain teachers. To be eligible for the age enhancement, a person must:

(1) be a member of this System to whom Section 1-160 does not apply and who, on or after July 1, 2018, is (i) in active payroll status as a full-time teacher employed by an employer under this Article, or (ii) on layoff status from such a position with a right of re-employment or recall to service, or (iii) on disability or a leave of absence from such a position, but only if the member has not been receiving benefits under Section 16-149 or 16-149.1 for a continuous period of 2 years or more as of the date of application;

(2) have never previously received a retirement annuity under this Article, except that receipt of a disability retirement annuity does not disqualify a member if the annuity has been terminated and the member has returned to full-time employment under this Article before the effective date of this Section;

(3) not have a QILDRO in effect against him or her under this Article;

(4) file with the Board and the employer on or before June 30, 2021 a written application electing to receive the age enhancement under this Section and a notice of resignation from employment, which resignation must take effect no later than the effective date of that election and no later than June 30, 2021;

(5) have accrued sufficient creditable service to be eligible to receive a retirement annuity under this Article;

(6) have attained age 55 (without the use of any age enhancement to be received under this Section) at the time of filing an application requesting an age enhancement under this Section; and

(7) not receive any other early retirement incentive under Section 16-133.2, 16-133.3, 16-133.4, or 16-133.5 of this Article.

(b) For an eligible member who elects to receive the age enhancement under this Section, the amount of age enhancement shall be equal to the applicable minimum age for an undiscounted retirement annuity (based on the amount of creditable service the member has on the effective date of the election) minus the member's actual age on the effective date of the election.

The age enhancement established under this Section may be used for all purposes under this Article (including calculation of a proportionate annuity payable by this System under the Retirement Systems Reciprocal Act), except for purposes of a reversionary annuity under Section 16-136, the retirement annuity under subdivision (a)(A) of Section 16-133, the required distributions under Section 16-142.3, and the determination of eligibility for and the computation of benefits under Section 16-133.2 of this Article. Age enhancement established under this Section shall not be used in determining benefits payable by any other participating system under the Retirement Systems Reciprocal Act.

(c) Notwithstanding Sections 16-133.1, 16-136.1, and 16-143.1, in exchange for the age enhancement under this Section, a member who elects the age enhancement under this Section agrees (1) to have his or her annual increases in retirement annuity determined in the manner provided in subsection (e) of Section 1-160 and (2) to have the annual increases in any survivor's annuity payable under this Article on behalf of the member (but not an annuity payable to an eligible child) determined in the manner provided in subsection (f) of Section 1-160.

(d) An employer may offer additional incentives to induce a member to elect the age enhancement under this Section. However, any such incentive shall not be included in the determination of salary for the purposes of this Article.

(e) A person who returns to service under this Article after receiving any age enhancement under this Section thereby irrevocably forfeits that age enhancement and remains ineligible for any other early retirement benefit under this Article.

(f) The Board may adopt rules to implement this Section.

(40 ILCS 5/17-116.7 new)

Sec. 17-116.7. Early retirement incentive for teachers.

(a) This Section provides an age enhancement as an early retirement incentive for certain teachers. To be eligible for the age enhancement provided in this Section, a person must:

(1) be a member of this Fund to whom Section 1-160 does not apply and who, on or after July 1, 2018, is (i) in active payroll status as a full-time teacher employed by an employer under this Article, or (ii) on layoff status from such a position with a right of re-employment or recall to service, or (iii) on disability or a leave of absence from such a position, but only if the member on leave has not been receiving a disability benefit under this Article for a continuous period of 2 years or more as of the date of application;

(2) have never previously received a retirement pension under this Article, except that receipt of a disability retirement pension does not disqualify a member if the pension has been terminated and the member has returned to full-time employment under this Article before the effective date of this Section;

(3) not have a QILDRO in effect against him or her under this Article;

(4) file with the Board and the Board of Education on or before June 30, 2021 a written application electing to receive the age enhancement under this Section and a notice of resignation from employment, which resignation must take effect no later than the effective date of that election and no later than June 30, 2021;

(5) have accrued sufficient creditable service to be eligible to receive a retirement pension under this Article;

(6) have attained age 55 (without the use of any age enhancement to be received under this Section) at the time of filing an application electing an age enhancement under this Section; and

(7) not receive any other early retirement incentive under Section 17-116.1, 17-116.3, 17-116.4, 17-116.5, or 17-116.6 of this Article.

(b) For an eligible member who elects to receive the age enhancement under this Section, the amount of age enhancement shall be equal to the applicable minimum age for an undiscounted service retirement pension (based on the amount of creditable service the member has on the effective date of the election) minus the member's actual age on the effective date of the election.

The age enhancement established under this Section may be used for all purposes under this Article (including calculation of a proportionate pension payable by this Fund under the Retirement Systems Reciprocal Act), except for purposes of the reversionary pension under Section 17-120, and distributions required by federal law on account of age. Age enhancement established under this Section shall not be used in determining benefits payable by any other participating system under the Retirement Systems Reciprocal Act.

(c) Notwithstanding Sections 17-119 and 17-122, in exchange for the age enhancement under this Section, a member who elects the age enhancement under this Section agrees (1) to have his or her annual increases in retirement pension determined in the manner provided in subsection (e) of Section 1-160 and (2) to have the annual increases in any survivor's pension (but not a children's pension) payable under this Article on behalf of the member determined in the manner provided in subsection (f) of Section 1-160.

(d) An employer may offer additional incentives to induce a member to elect the age enhancement under this Section. However, any such incentive shall not be included in the determination of salary for the purposes of this Article.

(e) A person who returns to service under this Article after receiving any age enhancement under this Section thereby irrevocably forfeits that age enhancement and remains ineligible for any other early retirement benefit under this Article.

(f) The Board may adopt rules to implement this Section.

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