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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 16-133.2 as follows:
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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. | ||||||||||||||||||||||||
8 | (a) A member
retiring after June 1, 1980 and on or before | ||||||||||||||||||||||||
9 | June 30, 2005 (or as provided in subsection (b) of this | ||||||||||||||||||||||||
10 | Section), and
applying for a retirement annuity within 6 months | ||||||||||||||||||||||||
11 | of the last day of
teaching for which retirement contributions | ||||||||||||||||||||||||
12 | were required,
may elect at the time of application for a | ||||||||||||||||||||||||
13 | retirement annuity, to make
a one time member contribution to | ||||||||||||||||||||||||
14 | the System and thereby
avoid the reduction in the retirement | ||||||||||||||||||||||||
15 | annuity for retirement before age
60 specified in paragraph (B) | ||||||||||||||||||||||||
16 | of Section 16-133. The exercise of the
election shall also | ||||||||||||||||||||||||
17 | obligate the last employer to make a one time
non-refundable | ||||||||||||||||||||||||
18 | contribution to the System. Substitute teachers wishing to
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19 | exercise this election must teach 85 or more days in one school | ||||||||||||||||||||||||
20 | term with
one employer, who shall be deemed the last employer | ||||||||||||||||||||||||
21 | for purposes of this
Section. The last day of teaching with | ||||||||||||||||||||||||
22 | that employer must be within 6
months of the date of | ||||||||||||||||||||||||
23 | application for retirement. All substitute
teaching credit |
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1 | applied toward the required 85 days must be earned after
June | ||||||
2 | 30, 1990.
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3 | The one time member and employer contributions shall be a | ||||||
4 | percentage of
the retiring member's highest annual salary rate | ||||||
5 | used in the determination
of the average salary for retirement | ||||||
6 | annuity purposes. However, when
determining the one-time | ||||||
7 | member and employer contributions, that part of a
member's | ||||||
8 | salary with the same employer which exceeds the annual salary | ||||||
9 | rate
for the preceding year by more than 20% shall be excluded. | ||||||
10 | The member
contribution shall be at the rate of 7% for the | ||||||
11 | lesser of the following 2
periods: (1) for each year that the | ||||||
12 | member is less than age 60; or (2) for
each year that the | ||||||
13 | member's creditable service is less than 35 years. If a
member | ||||||
14 | is at least age 55 and has at least 34 years of creditable | ||||||
15 | service, no
member or employer contribution for the early | ||||||
16 | retirement option shall be
required. The employer contribution | ||||||
17 | shall be at the rate of 20% for each year
the member is under | ||||||
18 | age 60.
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19 | Upon receipt of the application and election, the System | ||||||
20 | shall determine
the one time employee and employer | ||||||
21 | contributions required. The member
contribution shall be | ||||||
22 | credited to the individual account of the member and
the | ||||||
23 | employer contribution shall be credited to the Benefit Trust | ||||||
24 | Reserve. The
provisions of this subsection (a) providing for | ||||||
25 | the avoidance of the reduction in retirement annuity shall
not | ||||||
26 | be applicable until the member's contribution, if any, has been |
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1 | received
by the System; however, the date such contributions | ||||||
2 | are received shall not be
considered in determining the | ||||||
3 | effective date of retirement.
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4 | The number of members working for a single employer who may
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5 | retire under this subsection or subsection (b) in any year may | ||||||
6 | be limited at the option
of the employer to a specified | ||||||
7 | percentage of those eligible, not less
than 30%, with the right | ||||||
8 | to participate to be allocated among those
applying on the | ||||||
9 | basis of seniority in the service of the employer.
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10 | (b) The provisions of subsection (a) of this Section shall | ||||||
11 | remain in effect for a member retiring after June 30, 2005 and | ||||||
12 | on or before July 1, 2007, provided that the member satisfies | ||||||
13 | both of the following requirements: | ||||||
14 | (1) the member notified his or her employer of intent | ||||||
15 | to retire under this Article on or before the effective | ||||||
16 | date of this amendatory Act of the 94th General Assembly | ||||||
17 | under the terms of a contract or collective bargaining | ||||||
18 | agreement entered into, amended, or renewed with the | ||||||
19 | employer on or before the effective date of this amendatory | ||||||
20 | Act of the 94th General Assembly; and
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21 | (2) the effective date of the member's retirement is on | ||||||
22 | or before July 1, 2007. | ||||||
23 | The member's employer must give evidence of the member's | ||||||
24 | notification by providing to the System:
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25 | (i) a copy of the member's notification to the employer | ||||||
26 | or the record of that notification;
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1 | (ii) an affidavit signed by the member and the | ||||||
2 | employer, verifying the notification; and
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3 | (iii) any additional documentation that the System may | ||||||
4 | require.
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5 | (c) Except as otherwise provided in subsection (b), and | ||||||
6 | subject to the provisions of Section 16-176, a member retiring | ||||||
7 | on or after July 1, 2005, and applying for a retirement annuity | ||||||
8 | within 6 months of the last day of teaching for which | ||||||
9 | retirement contributions were required, may elect at the time | ||||||
10 | of application for a retirement annuity, to make a one-time | ||||||
11 | member contribution to the System and thereby avoid the | ||||||
12 | reduction in the retirement annuity for retirement before age | ||||||
13 | 60 specified in paragraph (B) of Section 16-133. The exercise | ||||||
14 | of the election shall also obligate the last employer to make a | ||||||
15 | one-time nonrefundable contribution to the System. Substitute | ||||||
16 | teachers wishing to exercise this election must teach 85 or | ||||||
17 | more days in one school term with one employer, who shall be | ||||||
18 | deemed the last employer for purposes of this Section. The last | ||||||
19 | day of teaching with that employer must be within 6 months of | ||||||
20 | the date of application for retirement. All substitute teaching | ||||||
21 | credit applied toward the required 85 days must be earned after | ||||||
22 | June 30, 1990. | ||||||
23 | The one-time member and employer contributions shall be a | ||||||
24 | percentage of the retiring member's highest annual salary rate | ||||||
25 | used in the determination of the average salary for retirement | ||||||
26 | annuity purposes. However, when determining the one-time |
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1 | member and employer contributions, that part of a member's | ||||||
2 | salary with the same employer which exceeds the annual salary | ||||||
3 | rate for the preceding year by more than 20% shall be excluded. | ||||||
4 | The member contribution shall be at the rate of 11.5% for the | ||||||
5 | lesser of the following 2 periods: (1) for each year that the | ||||||
6 | member is less than age 60; or (2) for each year that the | ||||||
7 | member's creditable service is less than 35 years. The employer | ||||||
8 | contribution shall be at the rate of 23.5% for each year the | ||||||
9 | member is under age 60. However, for eligible members whose | ||||||
10 | last day of teaching for which retirement contributions are | ||||||
11 | required occurs on or after July 1, 2013, the member | ||||||
12 | contribution shall be at the rate of 14.4% and the employer | ||||||
13 | contribution shall be at the rate of 29.3%. This increase | ||||||
14 | reflects the recommended adjustment of the Commission on | ||||||
15 | Government Forecasting and Accountability and is intended to | ||||||
16 | prevent the termination of the program under Section 16-176 | ||||||
17 | that would otherwise occur on July 1, 2013. | ||||||
18 | Upon receipt of the application and election, the System | ||||||
19 | shall determine the one-time employee and employer | ||||||
20 | contributions required. The member contribution shall be | ||||||
21 | credited to the individual account of the member and the | ||||||
22 | employer contribution shall be credited to the Benefit Trust | ||||||
23 | Reserve. The avoidance of the reduction in retirement annuity | ||||||
24 | provided under this subsection (c) is not applicable until the | ||||||
25 | member's contribution, if any, has been received by the System; | ||||||
26 | however, the date that contribution is received shall not be |
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1 | considered in determining the effective date of retirement.
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2 | The number of members working for a single employer who may | ||||||
3 | retire under this subsection (c) in any year may be limited at | ||||||
4 | the option of the employer to a specified percentage of those | ||||||
5 | eligible, not less than 10%, with the right to participate to | ||||||
6 | be allocated among those applying on the basis of seniority in | ||||||
7 | the service of the employer. | ||||||
8 | (Source: P.A. 93-469, eff. 8-8-03; 94-4, eff. 6-1-05.)
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9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
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