|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
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 adding | ||||||||||||||||||||||||||
5 | Section 17-116.7 as follows: | ||||||||||||||||||||||||||
6 | (40 ILCS 5/17-116.7 new) | ||||||||||||||||||||||||||
7 | Sec. 17-116.7. Early retirement incentives.
| ||||||||||||||||||||||||||
8 | (a) A teacher who is covered by a collective bargaining | ||||||||||||||||||||||||||
9 | agreement shall not be eligible for the early retirement | ||||||||||||||||||||||||||
10 | incentives provided under this Section unless the collective | ||||||||||||||||||||||||||
11 | bargaining agent and the Board of Education have entered into | ||||||||||||||||||||||||||
12 | an agreement under which the agent agrees that any payment for | ||||||||||||||||||||||||||
13 | accumulated unused sick days to which the employee is entitled | ||||||||||||||||||||||||||
14 | upon withdrawal from service may be paid by the Board of | ||||||||||||||||||||||||||
15 | Education in installments over a period of up to 5 years, and a | ||||||||||||||||||||||||||
16 | copy of this agreement has been filed with the Board of the | ||||||||||||||||||||||||||
17 | Fund. | ||||||||||||||||||||||||||
18 | To be eligible for the benefits provided in this Section, a | ||||||||||||||||||||||||||
19 | person must: | ||||||||||||||||||||||||||
20 | (1) be a member of this Fund who, on November 1,
2004, | ||||||||||||||||||||||||||
21 | is (i) in active payroll status as a teacher, or (ii) on | ||||||||||||||||||||||||||
22 | layoff status from such a position with a right of | ||||||||||||||||||||||||||
23 | re-employment or recall to service, or (iii) on leave of | ||||||||||||||||||||||||||
24 | absence from such a position, but only if the member on | ||||||||||||||||||||||||||
25 | leave has not been receiving a disability benefit under | ||||||||||||||||||||||||||
26 | this Article for a continuous period of 2 years or more as | ||||||||||||||||||||||||||
27 | of the date of application; | ||||||||||||||||||||||||||
28 | (2) be a member of this Fund who, on or after May 1,
| ||||||||||||||||||||||||||
29 | 2004, is (i) in active payroll status as a teacher, or (ii) | ||||||||||||||||||||||||||
30 | on layoff status from such a position with a right of | ||||||||||||||||||||||||||
31 | re-employment or recall to service, or (iii) on leave of | ||||||||||||||||||||||||||
32 | absence from such a position, but only if the member on |
| |||||||
| |||||||
1 | leave has not been receiving a disability benefit under | ||||||
2 | this Article for a continuous period of 2 years or more as | ||||||
3 | of the date of application; | ||||||
4 | (3) have not previously received a retirement
pension | ||||||
5 | under this Article; | ||||||
6 | (4) file with the Board and the Board of Education,
| ||||||
7 | before March 1, 2005, a written application requesting the | ||||||
8 | benefits provided in this Section and a notice of | ||||||
9 | resignation from employment, which resignation must take | ||||||
10 | effect no earlier than the last day of the 2004-05 school | ||||||
11 | year and no later than September 1, 2005, unless the | ||||||
12 | applicant's retirement is delayed under subsection (e) or | ||||||
13 | (f) of this Section; | ||||||
14 | (5) be eligible to receive a retirement pension
under | ||||||
15 | this Article (for which purpose any age enhancement or | ||||||
16 | creditable service received under this Section may be used) | ||||||
17 | and elect to receive the retirement pension beginning no | ||||||
18 | earlier than the first day after the last day of the | ||||||
19 | 2004-05 school year and no later than September 1, 2005 or | ||||||
20 | the date established under subsection (e) or (f) of this | ||||||
21 | Section, if applicable; | ||||||
22 | (6) have attained age 50 (without the use of any age
| ||||||
23 | enhancement or creditable service received under this | ||||||
24 | Section) by the effective date of the retirement pension; | ||||||
25 | (7) have at least 5 years of creditable service
under | ||||||
26 | this Fund or any of the participating systems under the | ||||||
27 | Retirement Systems Reciprocal Act (without the use of any | ||||||
28 | creditable service received under this Section) by the | ||||||
29 | effective date of the retirement pension.
| ||||||
30 | (b) An eligible person may establish up to 5 years of | ||||||
31 | creditable service under this Section. In addition, for each | ||||||
32 | period of creditable service established under this Section, a | ||||||
33 | person's age at retirement shall be deemed to be increased by | ||||||
34 | an equal period. | ||||||
35 |
The creditable service established under this Section may | ||||||
36 | be used for all purposes under this Article and the Retirement |
| |||||||
| |||||||
1 | Systems Reciprocal Act, except for the purposes of Section | ||||||
2 | 17-116.1, and the determination of average salary or | ||||||
3 | compensation under this or any other Article of this Code. | ||||||
4 | The age enhancement established under this Section may be | ||||||
5 | used for all purposes under this Article (including calculation | ||||||
6 | of a proportionate pension payable by this Fund under the | ||||||
7 | Retirement Systems Reciprocal Act), except for purposes of the | ||||||
8 | reversionary pension under Section 17-120, and distributions | ||||||
9 | required by federal law on account of age. However, age | ||||||
10 | enhancement established under this Section shall not be used in | ||||||
11 | determining benefits payable under other Articles of this Code | ||||||
12 | under the Retirement Systems Reciprocal Act.
| ||||||
13 | (c) For all creditable service established under this | ||||||
14 | Section, the employer must pay to the Fund an employer | ||||||
15 | contribution consisting of 12% of the member's highest annual | ||||||
16 | full-time rate of compensation for each year of creditable | ||||||
17 | service granted under this Section. | ||||||
18 |
The employer contribution shall be paid to the Fund in one | ||||||
19 | of the following ways: (i) in a single sum at the time of the | ||||||
20 | member's retirement, (ii) in equal quarterly installments over | ||||||
21 | a period of 5 years from the date of retirement, or (iii) | ||||||
22 | subject to the approval of the Board of the Fund, in unequal | ||||||
23 | installments over a period of no more than 5 years from the | ||||||
24 | date of retirement, as provided in a payment plan designed by | ||||||
25 | the Fund to accommodate the needs of the employer. The | ||||||
26 | employer's failure to make the required contributions in a | ||||||
27 | timely manner shall not affect the payment of the retirement | ||||||
28 | pension. | ||||||
29 | For all creditable service established under this Section, | ||||||
30 | the employee must pay to the Fund an employee contribution | ||||||
31 | consisting of 4% of the member's highest annual salary rate | ||||||
32 | used in the determination of the retirement pension for each | ||||||
33 | year of creditable service granted under this Section. The | ||||||
34 | employee contribution shall be deducted from the retirement | ||||||
35 | annuity in 24 monthly installments. | ||||||
36 |
(d) An annuitant who has received any age enhancement or |
| |||||||
| |||||||
1 | creditable service under this Section and whose pension is | ||||||
2 | suspended or cancelled under Section 17-149 or 17-150 shall | ||||||
3 | thereby forfeit the age enhancement and creditable service. The | ||||||
4 | forfeiture of creditable service under this subsection shall | ||||||
5 | not entitle the employer to a refund of the employer | ||||||
6 | contribution paid under this Section, nor to forgiveness of any | ||||||
7 | part of that contribution that remains unpaid. The forfeiture | ||||||
8 | of creditable service under this subsection shall not entitle | ||||||
9 | the employee to a refund of the employee contribution paid | ||||||
10 | under this Section. | ||||||
11 | (e) If the number of employees of an employer that apply | ||||||
12 | for early retirement under this Section exceeds 30% of those | ||||||
13 | eligible, the employer may require that, for any or all of the | ||||||
14 | number of applicants in excess of that 30%, the starting date | ||||||
15 | of the retirement pension enhanced under this Section be no | ||||||
16 | earlier than June 1, 2005 and no later than September 1, 2005. | ||||||
17 | The right to have the retirement pension begin before June 1, | ||||||
18 | 2005 shall be allocated among the applicants on the basis of | ||||||
19 | seniority in the service of that employer.
This delay applies | ||||||
20 | only to persons who are applying for early retirement | ||||||
21 | incentives under this Section, and does not prevent a person | ||||||
22 | whose application for early retirement incentives has been | ||||||
23 | withdrawn from beginning to receive a retirement pension on the | ||||||
24 | earliest date upon which the person is otherwise eligible under | ||||||
25 | this Article. | ||||||
26 | (f) For a member who receives notice that he or she has | ||||||
27 | been declared a reserve teacher pursuant to a collective | ||||||
28 | bargaining agreement after February 15, 2005, but before | ||||||
29 | September 15, 2005: (1) the March 1, 2005 application deadline | ||||||
30 | in subdivision (a)(4) of this Section is extended to a date 15 | ||||||
31 | days after the date of notification of the reserve teacher | ||||||
32 | declaration, (2) the September 1, 2005 deadline in subdivision | ||||||
33 | (a)(5) of this Section is extended to October 1, 2005, and (3) | ||||||
34 | the member shall not be included in the calculation of the 30% | ||||||
35 | under subsection (e) and is not subject to delay in retirement | ||||||
36 | under that subsection. |
| |||||||
| |||||||
1 | (g) A member who receives any early retirement incentive | ||||||
2 | under Section 17-116.3, 17-116.4, 17-116.5, or 17-116.6 may not | ||||||
3 | receive any early retirement incentive under this Section.
| ||||||
4 | Section 90. The State Mandates Act is amended by adding | ||||||
5 | Section 8.28 as
follows:
| ||||||
6 | (30 ILCS 805/8.28 new)
| ||||||
7 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
8 | of this
Act, no reimbursement by the State is required for the | ||||||
9 | implementation of
any mandate created by this amendatory Act of | ||||||
10 | the 93rd General Assembly.
| ||||||
11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
|