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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Section 17-116.1
as follows:
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6 | (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
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7 | Sec. 17-116.1. Early retirement without discount.
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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 the | ||||||||||||||||||||||||||
11 | time of application to make a one time employee
contribution to | ||||||||||||||||||||||||||
12 | the system and thereby avoid the early retirement reduction in
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13 | allowance specified in paragraph (4) of Section 17-116 of this | ||||||||||||||||||||||||||
14 | Article. The
exercise of the election shall obligate the last | ||||||||||||||||||||||||||
15 | Employer to also make a one
time non-refundable contribution to | ||||||||||||||||||||||||||
16 | the Fund.
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17 | (a-5) A member retiring after June 1, 2005 and before June | ||||||||||||||||||||||||||
18 | 30, 2010 and
within 6
months of the last day of teaching for | ||||||||||||||||||||||||||
19 | which retirement contributions were
required, may
elect at the | ||||||||||||||||||||||||||
20 | time of application to make a one time employee contribution to
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21 | the system
and thereby avoid the early retirement reduction in | ||||||||||||||||||||||||||
22 | allowance specified in
paragraph (4)
of Section 17-116. The | ||||||||||||||||||||||||||
23 | exercise of the election shall obligate the last
Employer to | ||||||||||||||||||||||||||
24 | also
make a one time non-refundable contribution to the Fund.
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25 | (b) Subject to authorization by the Employer as provided | ||||||||||||||||||||||||||
26 | in subsection (c),
a member retiring on or after June 30, 1995 | ||||||||||||||||||||||||||
27 | and on or before June 1, 2005
June 30, 2005 and
within 6 months | ||||||||||||||||||||||||||
28 | of the last day of teaching for which retirement
contributions | ||||||||||||||||||||||||||
29 | were required may elect at the time of application to make a
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30 | one-time employee contribution to the Fund and thereby avoid | ||||||||||||||||||||||||||
31 | the early
retirement reduction in allowance specified in | ||||||||||||||||||||||||||
32 | paragraph (4) of Section
17-116. The exercise of the election |
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1 | shall obligate the last Employer to
also make a one-time | ||||||
2 | nonrefundable contribution to the Fund.
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3 | (c) The benefits provided in subsection (b) are available | ||||||
4 | only to members
who retire, during a specified period, from | ||||||
5 | employment with an Employer that
has adopted and filed with the | ||||||
6 | Board a resolution expressly providing for the
creation of an | ||||||
7 | early retirement without discount program under this Section | ||||||
8 | for
that period.
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9 | The Employer has the full discretion and authority to | ||||||
10 | determine whether an
early retirement without discount program | ||||||
11 | is in its best interest and to
provide such a program to its | ||||||
12 | eligible employees in accordance with this
Section. The | ||||||
13 | Employer may decide to authorize such a program for one or more
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14 | of the following periods: for the period beginning July 1, 1997 | ||||||
15 | and ending
June 30, 1998, in which case the resolution must be | ||||||
16 | adopted by January 1, 1998;
for the period beginning July 1, | ||||||
17 | 1998 and ending June 30, 1999, in which case
the resolution | ||||||
18 | must be adopted by March 31, 1998; for the period
beginning | ||||||
19 | July 1, 1999 and ending June 30, 2000, in which case the | ||||||
20 | resolution
must be adopted by March 31, 1999; for the period | ||||||
21 | beginning July 1, 2000 and
ending June 30, 2001, in which case | ||||||
22 | the resolution must be
adopted by March 31,
2000; for the | ||||||
23 | period beginning July 1, 2001 and ending June 30, 2002, in
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24 | which
case the resolution must be adopted by March 31, 2001; | ||||||
25 | for the period beginning
July 1, 2002 and ending June 30, 2003, | ||||||
26 | in which case the resolution must be
adopted by March 31, 2002; | ||||||
27 | for the period beginning July 1, 2003 and
ending
June 30, 2004, | ||||||
28 | in which case the resolution must be
adopted by March 31, 2003;
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29 | and for the period beginning July 1, 2004 and ending June 1, | ||||||
30 | 2005
June 30, 2005 , in which
case the resolution must be | ||||||
31 | adopted by March 31, 2004.
The resolution must be filed with | ||||||
32 | the Board within 10 days after it is
adopted. A single | ||||||
33 | resolution may authorize an early retirement without
discount | ||||||
34 | program as provided in this Section for more than one period.
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35 | Notwithstanding Section 17-157, the Employer shall also | ||||||
36 | have full discretion
and authority to determine whether to |
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1 | allow its employees who withdrew from
service on or after June | ||||||
2 | 30, 1995 and before June 27, 1997 to participate in an
early | ||||||
3 | retirement without discount program under subsection (b). An | ||||||
4 | early
retirement without discount program for those who | ||||||
5 | withdrew from service on or
after June 30, 1995 and before June | ||||||
6 | 27, 1997 may be authorized only by a
resolution of the Employer | ||||||
7 | that is adopted by January 1, 1998 and filed with
the Board | ||||||
8 | within 10 days after its adoption. If such a resolution is duly
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9 | adopted and filed, a person who (i) withdrew from service with | ||||||
10 | the Employer on
or after June 30, 1995 and before June 27, | ||||||
11 | 1997, (ii) qualifies for early
retirement without discount | ||||||
12 | under subsection (b), (iii) applies to the Fund
within 90 days | ||||||
13 | after the authorizing resolution is adopted, and (iv) pays the
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14 | required employee contribution shall have his or her retirement | ||||||
15 | pension
recalculated in accordance with subsection (b). The | ||||||
16 | resulting increase shall
be effective retroactively to the | ||||||
17 | starting date of the retirement pension.
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18 | (d) The one-time employee contribution shall be equal to | ||||||
19 | 7% of the retiring
member's highest full-time annual salary | ||||||
20 | rate used in the determination of the
average salary rate for | ||||||
21 | retirement pension, or if not full-time then the
full-time | ||||||
22 | equivalent, multiplied by (1) the number of years the teacher | ||||||
23 | is
under age 60, or (2) the number of years the employee's | ||||||
24 | creditable service is
less than 34 years, whichever is less.
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25 | The Employer contribution shall be 20% of such salary | ||||||
26 | multiplied by such
number of years.
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27 | (e) Upon receipt of the application and election, the | ||||||
28 | Board shall determine
the one time employee and Employer | ||||||
29 | contributions. The provisions of this
Section shall not be | ||||||
30 | applicable until the employee contribution, if any,
has been | ||||||
31 | received by the Fund;
however, the date that contribution is | ||||||
32 | received
shall not be considered in determining the effective | ||||||
33 | date of retirement.
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34 | (f) The number of employees who may retire under this | ||||||
35 | Section in any year
may be limited at the option of the | ||||||
36 | Employer to a specified percentage of those
eligible, not lower |
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1 | than 30%, with the right to participate to be allocated
among | ||||||
2 | those applying on the basis of seniority in the service of the | ||||||
3 | Employer.
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4 | (Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97; | ||||||
5 | 90-566, eff.
1-2-98; 91-17, eff. 6-4-99.)
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6 | Section 90. The State Mandates Act is amended by adding | ||||||
7 | Section 8.28 as
follows:
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8 | (30 ILCS 805/8.28 new)
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9 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
10 | of this
Act, no reimbursement by the State is required for the | ||||||
11 | implementation of
any mandate created by this amendatory Act of | ||||||
12 | the 93rd General Assembly.
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13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law.
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