93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6587


 
Introduced 02/09/04, by Raymond Poe - Ruth Munson - Frank Aguilar - Suzanne Bassi - Robert W. Pritchard
 
SYNOPSIS AS INTRODUCED:
 		














40 ILCS 5/16-133.2
  from Ch. 108 1/2, par. 16-133.2



30 ILCS 805/8.28 new










    Amends the Downstate Teachers Article of the Illinois Pension Code.  Extends
the deadline for application for early retirement without discount from June
30, 2005 to June 30, 2010; also reduces the required contribution for some
members.  Amends the State Mandates Act to require implementation without
reimbursement.  Effective immediately.
















LRB093 17875 LRD 43557 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB6587

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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 16-133.2
as follows:


 



6
    (40 ILCS 5/16-133.2)  (from Ch. 108 1/2, par. 16-133.2)


7
    Sec. 16-133.2. Early retirement without discount. A member

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retiring after June 1, 1980 and on or before June 30, 2010

9
2005, and
applying for a retirement annuity within 6 months of 
10
the last day of
teaching for which retirement contributions 
11
were required,
may elect at the time of application for a 
12
retirement annuity, to make
a one time member contribution to 
13
the System and thereby
avoid the reduction in the retirement 
14
annuity for retirement before age
60 specified in paragraph (B) 
15
of Section 16-133.  The exercise of the
election shall also 
16
obligate the last employer to make a one time
non-refundable 
17
contribution to the System.  Substitute teachers wishing to

18
exercise this election must teach 85 or more days in one school 
19
term with
one employer, who shall be deemed the last employer 
20
for purposes of this
Section.  The last day of teaching with 
21
that employer must be within 6
months of the date of 
22
application for retirement.  All substitute
teaching credit 
23
applied toward the required 85 days must be earned after
June 
24
30, 1990.

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    The one time member and employer contributions shall be a 
26
percentage of
the retiring member's highest annual salary rate 
27
used in the determination
of the average salary for retirement 
28
annuity purposes.  However, when
determining the one-time 
29
member and employer contributions, that part of a
member's 
30
salary with the same employer which exceeds the annual salary 
31
rate
for the preceding year by more than 20% shall be excluded.  
32
The member
contribution shall be at the rate of 7% for the 
 


 






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lesser of the following 2
periods:  (1) for each year that the 
2
member is less than age 60; or (2) for
each year that the 
3
member's creditable service is less than 34
35 years.  If a

4
member is at least age 55 and has at least 34 years of 
5
creditable service, no
member or employer contribution for the 
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early retirement option shall be
required.  The employer 
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contribution shall be at the rate of 20% for each year
the 
8
member is under age 60.

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    Upon receipt of the application and election, the System 
10
shall determine
the one time employee and employer 
11
contributions required.  The member
contribution shall be 
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credited to the individual account of the member and
the 
13
employer contribution shall be credited to the Benefit Trust 
14
Reserve.  The
provisions of this Section shall
not be applicable 
15
until the member's contribution, if any, has been received
by 
16
the System; however, the date such contributions are received 
17
shall not be
considered in determining the effective date of 
18
retirement.

19
    The number of members working for a single employer who may

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retire under this Section in any year may be limited at the 
21
option
of the employer to a specified percentage of those 
22
eligible, not less
than 30%, with the right to participate to 
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be allocated among those
applying on the basis of seniority in 
24
the service of the employer.

25
(Source: P.A. 93-469, eff. 8-8-03.)



 
26
    Section 90. The State Mandates Act is amended by adding 
27
Section 8.28 as
follows:


 
28
    (30 ILCS 805/8.28 new)

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    Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 
30
of this
Act, no reimbursement by the State is required for the 
31
implementation of
any mandate created by this amendatory Act of 
32
the 93rd General Assembly.

 
33
    Section 99. Effective date. This Act takes effect upon 
 


 






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becoming law.