093_HB3217

 
                                     LRB093 06783 LRD 06923 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 17-116.1 as follows:

 6        (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
 7        Sec. 17-116.1.  Early retirement without discount.
 8        (a)  A member retiring after June 1, 1980 and before June
 9    30,  1995 and within 6 months of the last day of teaching for
10    which retirement contributions were required,  may  elect  at
11    the   time  of  application  to  make  a  one  time  employee
12    contribution to  the  system  and  thereby  avoid  the  early
13    retirement  reduction in allowance specified in paragraph (4)
14    of Section 17-116 of  this  Article.   The  exercise  of  the
15    election  shall obligate the last Employer to also make a one
16    time non-refundable contribution to the Fund.
17        (a-5) A member retiring after June  1,  2004  and  before
18    June 30, 2009 and within 6 months of the last day of teaching
19    for  which  retirement contributions were required, may elect
20    at the time of  application  to  make  a  one  time  employee
21    contribution  to  the  system  and  thereby  avoid  the early
22    retirement reduction in allowance specified in paragraph  (4)
23    of  Section  17-116.   The  exercise  of  the  election shall
24    obligate  the  last  Employer  to  also  make  a   one   time
25    non-refundable contribution to the Fund.
26        (b)  Subject to authorization by the Employer as provided
27    in  subsection  (c),  a  member retiring on or after June 30,
28    1995 and on or before June 1, 2004 June 30, 2005 and within 6
29    months of the last  day  of  teaching  for  which  retirement
30    contributions   were  required  may  elect  at  the  time  of
31    application to make a one-time employee contribution  to  the
 
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 1    Fund  and  thereby  avoid  the  early retirement reduction in
 2    allowance specified in paragraph (4) of Section 17-116.   The
 3    exercise  of the election shall obligate the last Employer to
 4    also make a one-time nonrefundable contribution to the Fund.
 5        (c)  The  benefits  provided  in   subsection   (b)   are
 6    available  only  to  members  who  retire, during a specified
 7    period, from employment with an Employer that has adopted and
 8    filed with the Board a resolution expressly providing for the
 9    creation of an  early  retirement  without  discount  program
10    under this Section for that period.
11        The  Employer  has  the  full discretion and authority to
12    determine  whether  an  early  retirement  without   discount
13    program is in its best interest and to provide such a program
14    to  its  eligible  employees in accordance with this Section.
15    The Employer may decide to authorize such a program  for  one
16    or  more  of the following periods:  for the period beginning
17    July 1, 1997 and ending June 30,  1998,  in  which  case  the
18    resolution must be adopted by January 1, 1998; for the period
19    beginning  July  1,  1998  and ending June 30, 1999, in which
20    case the resolution must be adopted by March  31,  1998;  for
21    the  period  beginning July 1, 1999 and ending June 30, 2000,
22    in which case the resolution must be  adopted  by  March  31,
23    1999;  for  the period beginning July 1, 2000 and ending June
24    30, 2001, in which case the resolution  must  be  adopted  by
25    March  31,  2000;  for  the period beginning July 1, 2001 and
26    ending June 30, 2002, in which case the  resolution  must  be
27    adopted  by  March 31, 2001; for the period beginning July 1,
28    2002 and ending June 30, 2003, in which case  the  resolution
29    must  be  adopted  by  March  31,  2002;  and  for the period
30    beginning July 1, 2003 and ending June 1, 2004 June 30, 2004,
31    in which case the resolution must be  adopted  by  March  31,
32    2003;  and  for  the period beginning July 1, 2004 and ending
33    June 30, 2005, in which case the resolution must  be  adopted
34    by  March  31,  2004.  The  resolution must be filed with the
 
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 1    Board  within  10  days  after  it  is  adopted.   A   single
 2    resolution may authorize an early retirement without discount
 3    program as provided in this Section for more than one period.
 4        Notwithstanding  Section  17-157, the Employer shall also
 5    have full discretion and authority to  determine  whether  to
 6    allow  its  employees  who  withdrew from service on or after
 7    June 30, 1995 and before June 27, 1997 to participate  in  an
 8    early  retirement  without  discount program under subsection
 9    (b).  An early retirement without discount program for  those
10    who  withdrew  from  service  on  or  after June 30, 1995 and
11    before June 27, 1997 may be authorized only by  a  resolution
12    of  the Employer that is adopted by January 1, 1998 and filed
13    with the Board within 10 days after its adoption.  If such  a
14    resolution  is  duly  adopted  and  filed,  a  person who (i)
15    withdrew from service with the Employer on or after June  30,
16    1995  and  before  June  27,  1997,  (ii) qualifies for early
17    retirement  without  discount  under  subsection  (b),  (iii)
18    applies to the Fund within  90  days  after  the  authorizing
19    resolution  is  adopted,  and (iv) pays the required employee
20    contribution  shall  have  his  or  her  retirement   pension
21    recalculated   in   accordance   with  subsection  (b).   The
22    resulting increase shall be effective  retroactively  to  the
23    starting date of the retirement pension.
24        (d)  The one-time employee contribution shall be equal to
25    7%  of  the retiring member's highest full-time annual salary
26    rate used in the determination of the average salary rate for
27    retirement pension, or if not full-time  then  the  full-time
28    equivalent, multiplied by (1) the number of years the teacher
29    is  under  age  60, or (2) the number of years the employee's
30    creditable service is less than 34 years, whichever is less.
31        The Employer contribution shall be  20%  of  such  salary
32    multiplied by such number of years.
33        (e)  Upon  receipt  of  the application and election, the
34    Board shall determine the  one  time  employee  and  Employer
 
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 1    contributions.   The  provisions of this Section shall not be
 2    applicable until the employee contribution, if any, has  been
 3    received  by the Fund; however, the date that contribution is
 4    received shall not be considered in determining the effective
 5    date of retirement.
 6        (f)  The number of employees who may  retire  under  this
 7    Section  in  any  year  may  be  limited at the option of the
 8    Employer to a specified percentage  of  those  eligible,  not
 9    lower than 30%, with the right to participate to be allocated
10    among those applying on the basis of seniority in the service
11    of the Employer.
12    (Source:  P.A.  90-32,  eff.  6-27-97;  90-448, eff. 8-16-97;
13    90-566, eff. 1-2-98; 91-17, eff. 6-4-99.)

14        Section 90.  The State Mandates Act is amended by  adding
15    Section 8.27 as follows:

16        (30 ILCS 805/8.27 new)
17        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
18    and 8 of this Act, no reimbursement by the State is  required
19    for  the  implementation  of  any  mandate  created  by  this
20    amendatory Act of the 93rd General Assembly.

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