93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4711


 
Introduced 2/4/2004, by Richard T. Bradley
 
SYNOPSIS AS INTRODUCED:
 		














40 ILCS 5/17-119.1





30 ILCS 805/8.28 new










    Amends the Chicago Teacher Article of the Illinois Pension Code.
Eliminates the required contribution for converting past service to
the augmented retirement formula, and provides for a refund of such
contributions already paid.  Also provides for recalculation of the
pension and a lump sum payment of the difference between the augmented
and unaugmented rates for certain pensioners.  Amends the State Mandates
Act to require implementation without reimbursement.  Effective immediately.
















LRB093 14997 LRD 40566 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











HB4711

LRB093 14997 LRD 40566 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 changing 
5
Section
17-119.1 as follows:


 
6
    (40 ILCS 5/17-119.1)

7
    Sec. 17-119.1. Optional increase in retirement annuity.


8
    (a) Beginning on the effective date of this amendatory Act 
9
of the 93rd
General Assembly, a member of the Fund shall
may 
10
qualify for the
augmented rate
under subdivision (b)(3) of 
11
Section 17-116 for all years of creditable service
earned 
12
before July 1, 1998 without
by making any
the optional

13
contribution.  Any such contribution already paid under this 
14
Section shall
be refunded by the Fund to the teacher or 
15
pensioner (or, if deceased, to the
teacher or pensioner's 
16
survivor, beneficiary, or estate), together with
interest at 
17
the rate of 5%, compounded annually, from the date of payment 
18
of
the contribution to the date of refund; except that any such 
19
contribution that
has been paid by an employer under subsection 
20
(e) shall be refunded to the
employer.
specified in subsection 
21
(b); except that a member who retires
on or after July 1, 1998 
22
with at least 30 years of creditable service at
retirement 
23
qualifies for the augmented rate without making any 
24
contribution
under subsection (b).


25
    Any member who retires on or after July 1, 1998 and before 
26
the effective
date of this amendatory Act of the 93rd
92nd 
27
General Assembly and
whose pension was calculated using an 
28
unaugmented rate may elect to have the
pension recalculated 
29
using the applicable augmented rate and to
with at
least 30 
30
years of creditable service shall be paid a lump sum equal to 
31
the
amount he or she would have received under the augmented 
32
rate minus the amount
he or she actually received prior to the 
 


 






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1
effective date of the
recalculation.


2
    The changes to this Section made by this amendatory Act of 
3
the 93rd
General Assembly apply without regard to whether the 
4
member was in service
on or after its effective date and 
5
notwithstanding Section 17-157.


6
    A member may not elect to qualify for the augmented rate 
7
for only
a portion of his or her creditable service earned 
8
before July 1, 1998.


9
    (b) (Blank).
The contribution shall be an amount equal to 
10
1.0% of the
member's
highest salary rate in the 4 consecutive 
11
school years immediately prior to but
not including the school 
12
year in which the application occurs, multiplied by
the number 
13
of years of creditable service earned by the member before July 
14
1,
1998 or 20, whichever is less.  This contribution shall be 
15
reduced by 1.0% of
that salary rate for every 3 full years of 
16
creditable service earned by the
member after June 30, 1998.  
17
The contribution shall be further reduced at
the rate of 25% of 
18
the contribution (as reduced for service after June 30,
1998) 
19
for each year of the member's total creditable service in 
20
excess of 34
years.  The contribution shall not in any event 
21
exceed 20% of that salary
rate.

22
    The member shall pay to the Fund the amount of the 
23
contribution as
calculated at the time of application under 
24
this Section.  The amount of the
contribution determined under 
25
this subsection shall be recalculated at the time
of 
26
retirement, and if the Fund determines that the amount paid by 
27
the member
exceeds the recalculated amount, the Fund shall 
28
refund the difference to the
member with regular interest from 
29
the date of payment to the date of refund.

30
    The contribution required by this subsection shall be paid 
31
in one of the
following ways or in a combination of the 
32
following ways that does not extend
over more than 5 years:

33
        (i) in a lump sum on or before the date of retirement;

34
        (ii) in substantially equal installments over a period 
35
    of time not to
exceed 5 years, as a deduction from salary 
36
    in accordance with Section 17-130.2;

 


 






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1
        (iii) in
substantially equal monthly installments over 
2
    a 24-month period, by a
deduction from the annuitant's 
3
    monthly benefit.


4
    (c) (Blank).
If the member fails to make the full 
5
contribution under
this Section
in a timely fashion, the 
6
payments made under this Section shall be refunded
to the 
7
member, without interest.  If the member (including a member who 
8
has
become an annuitant) dies before making the full

9
contribution, the payments made under this Section shall be 
10
refunded to the
member's designated beneficiary if there is no 
11
survivor's or children's
pension benefit payable.  If there is a 
12
survivor's or children's benefit
payable, then all payments 
13
made under this Section shall be retained by the
Fund and all 
14
such survivor's or children's benefits payable shall be 
15
calculated
as if all contributions required under this Section 
16
have been paid in full.


17
    (d) (Blank).
For purposes of this Section and subsection 
18
(b) of
Section 17-116, optional creditable service established 
19
by a member shall be
deemed to have been earned at the time of 
20
the employment or other qualifying
event upon which the service 
21
is based, rather than at the time the credit was
established in 
22
this Fund.


23
    (e) (Blank).
The contributions required under this Section 
24
are the
responsibility of the teacher and not the teacher's 
25
employer.  However, an
employer of teachers may, after the 
26
effective date of this amendatory Act of
1998, specifically 
27
agree, through collective bargaining or otherwise, to make
the 
28
contributions required by this Section on behalf of those 
29
teachers.


30
(Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599, 
31
eff. 6-28-02;
92-651, eff. 7-11-02.)


 
32
    Section 90. The State Mandates Act is amended by adding 
33
Section 8.28 as
follows:


 
34
    (30 ILCS 805/8.28 new)

 


 






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    Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 
2
of this
Act, no reimbursement by the State is required for the 
3
implementation of
any mandate created by this amendatory Act of 
4
the 93rd General Assembly.

 
5
    Section 99. Effective date. This Act takes effect upon 
6
becoming law.