Sen. Bill Brady
Filed: 5/5/2004
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1 | AMENDMENT TO HOUSE BILL 6616
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2 | AMENDMENT NO. ______. Amend House Bill 6616 on page 1, in | ||||||
3 | line 5, by changing "Section 7-132" to "Sections 7-132 and | ||||||
4 | 16-133.2"; and
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5 | on page 9, below line 4, by inserting the following:
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6 | "(40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
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7 | Sec. 16-133.2. Early retirement without discount. A member
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8 | retiring after June 1, 1980 and on or before June 30, 2010
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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
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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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1 | The one time member and employer contributions shall be a | ||||||
2 | percentage of
the retiring member's highest annual salary rate | ||||||
3 | used in the determination
of the average salary for retirement | ||||||
4 | annuity purposes. However, when
determining the one-time | ||||||
5 | member and employer contributions, that part of a
member's | ||||||
6 | salary with the same employer which exceeds the annual salary | ||||||
7 | rate
for the preceding year by more than 20% shall be excluded. | ||||||
8 | The member
contribution shall be at the rate of 7% for the | ||||||
9 | lesser of the following 2
periods: (1) for each year that the | ||||||
10 | member is less than age 60; or (2) for
each year that the | ||||||
11 | member's creditable service is less than 34
35 years. If a
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12 | member is at least age 55 and has at least 34 years of | ||||||
13 | creditable service, no
member or employer contribution for the | ||||||
14 | early retirement option shall be
required. The employer | ||||||
15 | contribution shall be at the rate of 20% for each year
the | ||||||
16 | member is under age 60.
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17 | Upon receipt of the application and election, the System | ||||||
18 | shall determine
the one time employee and employer | ||||||
19 | contributions required. The member
contribution shall be | ||||||
20 | credited to the individual account of the member and
the | ||||||
21 | employer contribution shall be credited to the Benefit Trust | ||||||
22 | Reserve. The
provisions of this Section shall
not be applicable | ||||||
23 | until the member's contribution, if any, has been received
by | ||||||
24 | the System; however, the date such contributions are received | ||||||
25 | shall not be
considered in determining the effective date of | ||||||
26 | retirement.
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27 | The number of members working for a single employer who may
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28 | retire under this Section in any year may be limited at the | ||||||
29 | option
of the employer to a specified percentage of those | ||||||
30 | eligible, not less
than 30%, with the right to participate to | ||||||
31 | be allocated among those
applying on the basis of seniority in | ||||||
32 | the service of the employer.
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33 | (Source: P.A. 93-469, eff. 8-8-03.)
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1 | Section 90. The State Mandates Act is amended by adding | ||||||
2 | Section 8.28 as
follows:
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3 | (30 ILCS 805/8.28 new)
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4 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
5 | of this
Act, no reimbursement by the State is required for the | ||||||
6 | implementation of
any mandate created by this amendatory Act of | ||||||
7 | the 93rd General Assembly. ".
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