95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4273


 
Introduced , by Rep. Robert S. Molaro
 
SYNOPSIS AS INTRODUCED:
 		












40 ILCS 5/17-116
  from Ch. 108 1/2, par. 17-116




30 ILCS 805/8.32 new











    Amends the Chicago Teacher Article of the Illinois Pension Code.  Provides that a
teacher may receive a retirement pension at age 60 with 10 years of service.
Amends the State Mandates Act to require implementation without reimbursement.
Effective immediately.
















LRB095 14496 AMC 40403 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











HB4273

LRB095 14496 AMC 40403 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: 


 
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    Section 5. The Illinois Pension Code is amended by changing 
5
Section 17-116
as follows:


 
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    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)

7
    Sec. 17-116. Service retirement pension.


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    (a) Each teacher having 20 years of service upon attainment 
9
of age 55,
or who thereafter attains age 55 shall be entitled 
10
to a service retirement
pension upon or after attainment of age 
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55; and each teacher in service on or
after July 1, 1971, with 
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5 or more but less than 20 years of service shall be
entitled 
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to receive a service retirement pension upon or after 
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attainment of
age 62.  Each teacher in service on or after July 
15
1, 2008 with 10 or more but
less than 20 years of service shall 
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be entitled to receive a service retirement
pension upon or 
17
after attainment of age 60.


18
    (b) The service retirement pension
for a teacher who 
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retires on or after June 25, 1971, at age
60 or over, shall be 
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calculated as follows:


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        (1) For creditable service earned before July 1, 1998 
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    that has not been
augmented under Section 17-119.1: 1.67% 
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    for each of the first 10 years
of service; 1.90% for each 
 


 






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    of the next 10 years of service; 2.10% for
each year of 
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    service in excess of 20 but not exceeding 30; and 2.30% for

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    each year of service in excess of 30, based upon average 
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    salary as
herein defined.


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        (2) For creditable service earned on or after July 1, 
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    1998 by a member
who has at least 30 years of creditable 
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    service on July 1, 1998 and who does
not elect to augment 
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    service under Section 17-119.1:  2.3% of average salary
for 
9
    each year of creditable service earned on or after July 1, 
10
    1998.


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        (3) For all other creditable service:  2.2% of average 
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    salary
for each year of creditable service.


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    (c) When computing such service retirement pensions, the

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following conditions shall apply:


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        1. Average salary shall consist of the average annual 
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    rate of salary
for the 4 consecutive years of validated 
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    service within the last 10 years
of service when such 
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    average annual rate was highest.  In the determination
of 
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    average salary for retirement allowance purposes, for 
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    members who
commenced employment after August 31, 1979, 
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    that part of the salary for any
year shall be excluded 
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    which exceeds the annual full-time salary rate for
the 
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    preceding year by more than 20%.  In the case of a member 
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    who commenced
employment before August 31, 1979 and who 
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    receives salary during any year
after September 1, 1983 
26
    which exceeds the annual full time salary rate for
the 
 


 






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    preceding year by more than 20%,
an Employer and other 
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    employers of
eligible contributors as defined in Section 
3
    17-106
shall pay to the Fund an amount equal to the present 
4
    value of the
additional service retirement pension 
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    resulting from such excess salary.
The present value of the 
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    additional service retirement pension shall be
computed by 
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    the Board on the basis of actuarial tables adopted by the

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    Board.  If a member elects to receive a pension from this 
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    Fund
provided by
Section 20-121, his salary under the State 
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    Universities Retirement System
and the Teachers' 
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    Retirement System of the State of Illinois shall be

12
    considered in determining such average salary.  Amounts 
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    paid after the
effective date of this amendatory Act of 
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    1991 for unused vacation time
earned after that effective 
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    date shall not under any circumstances be
included in the 
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    calculation of average salary or the annual rate of salary

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    for the purposes of this Article.


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        2. Proportionate credit shall be given for validated 
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    service of less
than one year.


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        3. For retirement at age 60 or over the pension shall 
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    be payable at
the full rate.


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        4. For separation from service below age 60 to a 
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    minimum age of 55,
the pension shall be discounted at the 
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    rate of 1/2 of one per cent for
each month that the age of 
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    the contributor is less than 60, but a
teacher may elect to 
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    defer the effective date of pension in order to
eliminate 
 


 






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    or reduce this discount.  This discount shall not be 
2
    applicable
to any participant who has at least 34 years of 
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    service or a
retirement pension of at least 74.6% of 
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    average salary on the date the
retirement annuity begins.


5
        5. No additional pension shall be granted for service 
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    exceeding 45
years.  Beginning June 26, 1971 no pension 
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    shall exceed the greater of
$1,500 per month or 75% of 
8
    average salary as herein defined.


9
        6. Service retirement pensions shall begin on the 
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    effective date of
resignation, retirement, the day 
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    following the close of the payroll
period for which service 
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    credit was validated, or the time the person
resigning or 
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    retiring attains age 55, or on a date elected by the

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    teacher, whichever shall be latest.


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        7. A member who is eligible to receive a retirement 
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    pension of at least
74.6% of average salary and will attain 
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    age 55 on or before December 31
during the year which 
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    commences on July 1 shall be deemed to attain age 55 on
the 
19
    preceding June 1.


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        8. A member retiring after the effective date of this 
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    amendatory Act
of 1998 shall receive a pension equal to 75% 
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    of average salary if the
member is qualified to receive a 
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    retirement pension equal to at least 74.6%
of average 
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    salary under this Article or as proportional annuities 
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    under
Article 20 of this Code.


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(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)


 
 


 






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1
    Section 90. The State Mandates Act is amended by adding 
2
Section 8.32 as follows:
 
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    (30 ILCS 805/8.32 new)
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    Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8 
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of this Act, no reimbursement by the State is required for the 
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implementation of any mandate created by this amendatory Act of 
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the 95th General Assembly.
 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.