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1 | AN ACT in relation to public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||||
5 | Sections 17-116
and 17-119 as follows:
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6 | (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
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7 | Sec. 17-116. Service retirement pension.
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8 | (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 | ||||||||||||||||||||||||||||
11 | 55; and each teacher in service on or
after July 1, 1971, with | ||||||||||||||||||||||||||||
12 | 5 or more but less than 20 years of service shall be
entitled | ||||||||||||||||||||||||||||
13 | to receive a service retirement pension upon or after | ||||||||||||||||||||||||||||
14 | attainment of
age 62.
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15 | (b) The service retirement pension for a teacher who | ||||||||||||||||||||||||||||
16 | retires on or after
June 25, 1971, at age 60 or over, shall be | ||||||||||||||||||||||||||||
17 | calculated as follows:
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18 | (1) For creditable service earned before July 1, 1998 | ||||||||||||||||||||||||||||
19 | that has not been
augmented under Section 17-119.1: 1.67% | ||||||||||||||||||||||||||||
20 | for each of the first 10 years
of service; 1.90% for each | ||||||||||||||||||||||||||||
21 | of the next 10 years of service; 2.10% for
each year of | ||||||||||||||||||||||||||||
22 | service in excess of 20 but not exceeding 30; and 2.30% for
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23 | each year of service in excess of 30, based upon average |
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1 | salary as
herein defined.
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2 | (2) For creditable service earned on or after July 1, | ||||||
3 | 1998 by a member
who has at least 30 years of creditable | ||||||
4 | service on July 1, 1998 and who does
not elect to augment | ||||||
5 | service under Section 17-119.1: 2.3% of average salary
for | ||||||
6 | each year of creditable service earned on or after July 1, | ||||||
7 | 1998.
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8 | (3) For all other creditable service: 2.2% of average | ||||||
9 | salary
for each year of creditable service.
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10 | (c) When computing such service retirement pensions, the
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11 | following conditions shall apply:
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12 | 1. Average salary shall consist of the average annual | ||||||
13 | rate of salary
for the 4 consecutive years of validated | ||||||
14 | service within the last 10 years
of service when such | ||||||
15 | average annual rate was highest. In the determination
of | ||||||
16 | average salary for retirement allowance purposes, for | ||||||
17 | members who
commenced employment after August 31, 1979, | ||||||
18 | that part of the salary for any
year shall be excluded | ||||||
19 | which exceeds the annual full-time salary rate for
the | ||||||
20 | preceding year by more than 20%. In the case of a member | ||||||
21 | who commenced
employment before August 31, 1979 and who | ||||||
22 | receives salary during any year
after September 1, 1983 | ||||||
23 | which exceeds the annual full time salary rate for
the | ||||||
24 | preceding year by more than 20%, an Employer and other | ||||||
25 | employers of
eligible contributors as defined in Section | ||||||
26 | 17-106 shall pay to the Fund an
amount equal to the present |
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1 | value of the
additional service retirement pension | ||||||
2 | resulting from such excess salary.
The present value of the | ||||||
3 | additional service retirement pension shall be
computed by | ||||||
4 | the Board on the basis of actuarial tables adopted by the
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5 | Board. If a member elects to receive a pension from this | ||||||
6 | Fund provided by
Section 20-121, his salary under the State | ||||||
7 | Universities Retirement System
and the Teachers' | ||||||
8 | Retirement System of the State of Illinois shall be
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9 | considered in determining such average salary. Amounts | ||||||
10 | paid after the
effective date of this amendatory Act of | ||||||
11 | 1991 for unused vacation time
earned after that effective | ||||||
12 | date shall not under any circumstances be
included in the | ||||||
13 | calculation of average salary or the annual rate of salary
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14 | for the purposes of this Article.
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15 | 2. Proportionate credit shall be given for validated | ||||||
16 | service of less
than one year.
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17 | 3. For retirement at age 60 or over the pension shall | ||||||
18 | be payable at
the full rate.
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19 | 4. For separation from service below age 60 to a | ||||||
20 | minimum age of 55,
the pension shall be discounted at the | ||||||
21 | rate of 1/2 of one per cent for
each month that the age of | ||||||
22 | the contributor is less than 60, but a
teacher may elect to | ||||||
23 | defer the effective date of pension in order to
eliminate | ||||||
24 | or reduce this discount. This discount shall not be | ||||||
25 | applicable
to any participant who has at least 34 years of | ||||||
26 | service or a
retirement pension of at least 74.6% of |
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1 | average salary on the date the
retirement annuity begins.
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2 | 5. No additional pension shall be granted for service | ||||||
3 | exceeding 45
years. Beginning June 26, 1971 no pension | ||||||
4 | shall exceed the greater of
$1,500 per month or 75% of | ||||||
5 | average salary as herein defined.
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6 | 6. Service retirement pensions shall begin on the | ||||||
7 | effective date of
resignation, retirement, the day | ||||||
8 | following the close of the payroll
period for which service | ||||||
9 | credit was validated, or the time the person
resigning or | ||||||
10 | retiring attains age 55, or on a date elected by the
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11 | teacher, whichever shall be latest.
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12 | 7. A member who is eligible to receive a retirement | ||||||
13 | pension of at least
74.6% of average salary and will attain | ||||||
14 | age 55 on or before December 31
during the year which | ||||||
15 | commences on July 1 shall be deemed to attain age 55 on
the | ||||||
16 | preceding June 1.
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17 | 8. A member retiring after the effective date of this | ||||||
18 | amendatory Act
of 1998 shall receive a pension equal to 75% | ||||||
19 | of average salary if the
member is qualified to receive a | ||||||
20 | retirement pension equal to at least 74.6%
of average | ||||||
21 | salary under this Article or as proportional annuities | ||||||
22 | under
Article 20 of this Code.
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23 | (d) Notwithstanding the other provisions of this Section, | ||||||
24 | the minimum
retirement pension payable to a person with at | ||||||
25 | least 20 years of service credit
under this Article who begins | ||||||
26 | receiving a retirement pension (other than a
reversionary |
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1 | pension) on or after January 1, 2009 shall be $1,500 per
month.
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2 | (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
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3 | (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
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4 | Sec. 17-119. Automatic annual increase in pension.
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5 | (a) Each teacher retiring on or after September 1, 1959, is | ||||||
6 | entitled to
the annual increase in pension, defined herein, | ||||||
7 | while he is receiving a pension
from the Fund.
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8 | 1. The term "base pension" means a service retirement | ||||||
9 | or disability
retirement pension in the amount fixed and | ||||||
10 | payable at the date of
retirement of a teacher.
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11 | 2. The annual increase in pension shall be at the rate | ||||||
12 | of 1 1/2% of
base pension. This increase shall first occur | ||||||
13 | in January of the year
next following the first anniversary | ||||||
14 | of retirement. At such time the
Fund shall pay the pro rata | ||||||
15 | part of the increase for the period
from the first | ||||||
16 | anniversary date to the date of the first increase in
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17 | pension. Beginning January 1, 1972, the rate of annual | ||||||
18 | increase in
pension shall be 2% of the base pension. | ||||||
19 | Beginning January 1, 1979, the
rate of annual increase in | ||||||
20 | pension shall be 3% of the base pension.
Beginning January | ||||||
21 | 1, 1990, all automatic annual increases payable under
this | ||||||
22 | Section shall be calculated as a percentage of the total | ||||||
23 | pension
payable at the time of the increase, including all | ||||||
24 | increases previously
granted under this Article, | ||||||
25 | notwithstanding Section 17-157.
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1 | 3. An increase in pension shall be granted only if the | ||||||
2 | retired
teacher is age 60 or over. If the teacher attains | ||||||
3 | age 60 after
retirement, the increase in pension shall | ||||||
4 | begin in January of the
year following the 61st birthday. | ||||||
5 | At such time the Fund also shall pay
the pro rata part of | ||||||
6 | the increase from the 61st birthday to the date of
first | ||||||
7 | increase in pension.
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8 | (b) In addition to other increases which may be provided by | ||||||
9 | this
Section, on January 1, 1981 any teacher who was receiving | ||||||
10 | a retirement pension
on or before January 1, 1971 shall have | ||||||
11 | his retirement pension then being paid
increased $1 per month | ||||||
12 | for each year of creditable service. On January
1, 1982, any | ||||||
13 | teacher whose retirement pension began on or before January 1,
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14 | 1977, shall have his retirement pension then being paid | ||||||
15 | increased $1 per
month for each year of creditable service.
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16 | (c) On January 1, 1987, any teacher whose retirement | ||||||
17 | pension began
on or before January 1, 1977, shall have the | ||||||
18 | monthly retirement pension
increased by an amount equal to 8ยข | ||||||
19 | per year of creditable service times the
number of years that | ||||||
20 | have elapsed since the retirement pension began.
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21 | (d) On January 1, 2009, every pensioner with at least 20 | ||||||
22 | years of service
credit under this Article who is receiving a | ||||||
23 | retirement pension (other than
a reversionary pension) of less | ||||||
24 | than $1,500 per month shall have the
retirement pension | ||||||
25 | increased to $1,500 on that date, notwithstanding
Section | ||||||
26 | 17-157. The increase under this subsection shall be included in |
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1 | the
calculation of the increases granted on that date or | ||||||
2 | thereafter under
subsection (a) of this Section.
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3 | (Source: P.A. 90-566, eff. 1-2-98.)
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4 | Section 90. The State Mandates Act is amended by adding | ||||||
5 | Section 8.32 as follows: | ||||||
6 | (30 ILCS 805/8.32 new) | ||||||
7 | Sec. 8.32. 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 95th General Assembly. | ||||||
11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law. |