093_HB3203

 
                                     LRB093 11023 EFG 11693 b

 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 as follows:

 6        (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
 7        Sec. 17-116. Service retirement pension.
 8        (a)  Each   teacher  having  20  years  of  service  upon
 9    attainment of age 55, or who thereafter attains age 55  shall
10    be  entitled  to  a  service retirement pension upon or after
11    attainment of age 55; and each teacher in service on or after
12    July 1, 1971, with 5 or  more  but  less  than  20  years  of
13    service  shall  be  entitled  to receive a service retirement
14    pension upon or after attainment of age 62.
15        (b)  The service retirement pension  for  a  teacher  who
16    retires  on  or after June 25, 1971, at age 60 or over, shall
17    be calculated as follows:
18             (1)  For creditable service earned  before  July  1,
19        1998  that has not been augmented under Section 17-119.1:
20        1.67% for each of the first 10 years  of  service;  1.90%
21        for  each of the next 10 years of service; 2.10% for each
22        year of service in excess of 20 but not exceeding 30; and
23        2.30% for each year of service in  excess  of  30,  based
24        upon average salary as herein defined.
25             (2)  For  creditable service earned on or after July
26        1, 1998 by  a  member  who  has  at  least  30  years  of
27        creditable service on July 1, 1998 and who does not elect
28        to  augment  service  under  Section  17-119.1:   2.3% of
29        average salary for each year of creditable service earned
30        on or after July 1, 1998.
31             (3)  For all  other  creditable  service:   2.2%  of
 
                            -2-      LRB093 11023 EFG 11693 b
 1        average salary for each year of creditable service.
 2        (c)  When computing such service retirement pensions, the
 3    following conditions shall apply:
 4             1.  Average  salary  shall  consist  of  the average
 5        annual rate of salary for  the  4  consecutive  years  of
 6        validated  service  within  the  last 10 years of service
 7        when such  average  annual  rate  was  highest.   In  the
 8        determination  of average salary for retirement allowance
 9        purposes, for  members  who  commenced  employment  after
10        August  31,  1979,  that  part of the salary for any year
11        shall be excluded  which  exceeds  the  annual  full-time
12        salary  rate for the preceding year by more than 20%.  In
13        the case of a  member  who  commenced  employment  before
14        August  31,  1979 and who receives salary during any year
15        after September 1, 1983 which  exceeds  the  annual  full
16        time salary rate for the preceding year by more than 20%,
17        an  Employer and other employers of eligible contributors
18        as defined in Section 17-106 shall pay  to  the  Fund  an
19        amount  equal  to  the  present  value  of the additional
20        service retirement pension  resulting  from  such  excess
21        salary.    The  present  value  of the additional service
22        retirement pension shall be computed by the Board on  the
23        basis  of  actuarial  tables  adopted by the Board.  If a
24        member  elects  to  receive  a  pension  from  this  Fund
25        provided by Section 20-121, his salary  under  the  State
26        Universities   Retirement   System   and   the  Teachers'
27        Retirement System of  the  State  of  Illinois  shall  be
28        considered  in  determining such average salary.  Amounts
29        paid after the effective date of this amendatory  Act  of
30        1991 for unused vacation time earned after that effective
31        date shall not under any circumstances be included in the
32        calculation  of  average  salary  or  the  annual rate of
33        salary for the purposes of this Article.
34             2.  Proportionate  credit   shall   be   given   for
 
                            -3-      LRB093 11023 EFG 11693 b
 1        validated service of less than one year.
 2             3.  For  retirement  at  age  60 or over the pension
 3        shall be payable at the full rate.
 4             4.  For separation from service below age  60  to  a
 5        minimum age of 55, the pension shall be discounted at the
 6        rate  of  1/2 of one per cent for each month that the age
 7        of the contributor is less than 60,  but  a  teacher  may
 8        elect  to defer the effective date of pension in order to
 9        eliminate or reduce this discount.  This  discount  shall
10        not  be applicable to any participant who has at least 34
11        years of service or a  retirement  pension  of  at  least
12        74.6%  of  average  salary  on  the  date  the retirement
13        annuity begins.
14             5.  No  additional  pension  shall  be  granted  for
15        service exceeding 45 years.  Beginning June 26, 1971  and
16        through June 30, 2003 no pension shall exceed the greater
17        of  $1,500  per  month or 75% of average salary as herein
18        defined.  Beginning July 1, 2003, no pension shall exceed
19        80% of average salary as herein defined.
20             6.  Service retirement pensions shall begin  on  the
21        effective   date  of  resignation,  retirement,  the  day
22        following the close  of  the  payroll  period  for  which
23        service  credit  was  validated,  or  the time the person
24        resigning or retiring  attains  age  55,  or  on  a  date
25        elected by the teacher, whichever shall be latest.
26             7.  A member who is eligible to receive a retirement
27        pension  of  at  least  74.6%  of average salary and will
28        attain age 55 on or before December 31  during  the  year
29        which  commences  on July 1 shall be deemed to attain age
30        55 on the preceding June 1.
31             8.  A member retiring after the  effective  date  of
32        this amendatory Act of 1998 shall receive a pension equal
33        to  75%  of  average salary if the member is qualified to
34        receive a retirement pension equal to at least  74.6%  of
 
                            -4-      LRB093 11023 EFG 11693 b
 1        average  salary  under  this  Article  or as proportional
 2        annuities under Article 20 of this Code.
 3    (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)

 4        Section 90.  The State Mandates Act is amended by  adding
 5    Section 8.27 as follows:

 6        (30 ILCS 805/8.27 new)
 7        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
 8    and 8 of this Act, no reimbursement by the State is  required
 9    for  the  implementation  of  any  mandate  created  by  this
10    amendatory Act of the 93rd General Assembly.

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