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| | SB2584 Engrossed | | LRB099 17112 EFG 41470 b |
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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 17-116 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 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
| 8 | | which has been held unconstitutional)
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| 9 | | Sec. 17-116. Service retirement pension.
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| 10 | | (a) Each teacher having 20 years of service upon attainment |
| 11 | | of age 55,
or who thereafter attains age 55 shall be entitled |
| 12 | | to a service retirement
pension upon or after attainment of age |
| 13 | | 55; and each teacher in service on or
after July 1, 1971, with |
| 14 | | 5 or more but less than 20 years of service shall be
entitled |
| 15 | | to receive a service retirement pension upon or after |
| 16 | | attainment of
age 62.
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| 17 | | (b) The service retirement pension
for a teacher who |
| 18 | | retires on or after June 25, 1971, at age
60 or over, shall be |
| 19 | | calculated as follows:
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| 20 | | (1) For creditable service earned before July 1, 1998 |
| 21 | | that has not been
augmented under Section 17-119.1: 1.67% |
| 22 | | for each of the first 10 years
of service; 1.90% for each |
| 23 | | of the next 10 years of service; 2.10% for
each year of |
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| 1 | | service in excess of 20 but not exceeding 30; and 2.30% for
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| 2 | | each year of service in excess of 30, based upon average |
| 3 | | salary as
herein defined.
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| 4 | | (2) For creditable service earned on or after July 1, |
| 5 | | 1998 by a member
who has at least 30 years of creditable |
| 6 | | service on July 1, 1998 and who does
not elect to augment |
| 7 | | service under Section 17-119.1: 2.3% of average salary
for |
| 8 | | each year of creditable service earned on or after July 1, |
| 9 | | 1998.
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| 10 | | (3) For all other creditable service: 2.2% of average |
| 11 | | salary
for each year of creditable service.
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| 12 | | (c) When computing such service retirement pensions, the
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| 13 | | following conditions shall apply:
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| 14 | | 1. Average salary shall consist of the average annual |
| 15 | | rate of salary
for the 4 consecutive years of validated |
| 16 | | service within the last 10 years
of service when such |
| 17 | | average annual rate was highest. In the determination
of |
| 18 | | average salary for retirement allowance purposes, for |
| 19 | | members who
commenced employment after August 31, 1979, |
| 20 | | that part of the salary for any
year shall be excluded |
| 21 | | which exceeds the annual full-time salary rate for
the |
| 22 | | preceding year by more than 20%. In the case of a member |
| 23 | | who commenced
employment before August 31, 1979 and who |
| 24 | | receives salary during any year
after September 1, 1983 |
| 25 | | which exceeds the annual full time salary rate for
the |
| 26 | | preceding year by more than 20%,
an Employer and other |
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| 1 | | employers of
eligible contributors as defined in Section |
| 2 | | 17-106
shall pay to the Fund an amount equal to the present |
| 3 | | value of the
additional service retirement pension |
| 4 | | resulting from such excess salary.
The present value of the |
| 5 | | additional service retirement pension shall be
computed by |
| 6 | | the Board on the basis of actuarial tables adopted by the
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| 7 | | Board. If a member elects to receive a pension from this |
| 8 | | Fund
provided by
Section 20-121, his salary under the State |
| 9 | | Universities Retirement System
and the Teachers' |
| 10 | | Retirement System of the State of Illinois shall be
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| 11 | | considered in determining such average salary. Amounts |
| 12 | | paid after the
effective date of this amendatory Act of |
| 13 | | 1991 for unused vacation time
earned after that effective |
| 14 | | date shall not under any circumstances be
included in the |
| 15 | | calculation of average salary or the annual rate of salary
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| 16 | | for the purposes of this Article.
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| 17 | | 2. Proportionate credit shall be given for validated |
| 18 | | service of less
than one year.
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| 19 | | 3. For retirement at age 60 or over the pension shall |
| 20 | | be payable at
the full rate.
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| 21 | | 4. For separation from service below age 60 to a |
| 22 | | minimum age of 55,
the pension shall be discounted at the |
| 23 | | rate of 1/2 of one per cent for
each month that the age of |
| 24 | | the contributor is less than 60, but a
teacher may elect to |
| 25 | | defer the effective date of pension in order to
eliminate |
| 26 | | or reduce this discount. This discount shall not be |
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| 1 | | applicable
to any participant who has at least 34 years of |
| 2 | | service or a
retirement pension of at least 74.6% of |
| 3 | | average salary on the date the
retirement annuity begins.
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| 4 | | 5. No additional pension shall be granted for service |
| 5 | | exceeding 45
years. Beginning June 26, 1971 no pension |
| 6 | | shall exceed the greater of
$1,500 per month or 75% of |
| 7 | | average salary as herein defined.
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| 8 | | 6. Service retirement pensions shall begin on the |
| 9 | | effective date of
resignation, retirement, the day |
| 10 | | following the close of the payroll
period for which service |
| 11 | | credit was validated, or the time the person
resigning or |
| 12 | | retiring attains age 55, or on a date elected by the
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| 13 | | teacher, whichever shall be latest; provided that, for a |
| 14 | | person who first becomes a member after the effective date |
| 15 | | of this amendatory Act of the 99th General Assembly, the |
| 16 | | benefit shall not commence more than one year prior to the |
| 17 | | date of the Fund's receipt of an application for the |
| 18 | | benefit.
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| 19 | | 7. A member who is eligible to receive a retirement |
| 20 | | pension of at least
74.6% of average salary and will attain |
| 21 | | age 55 on or before December 31
during the year which |
| 22 | | commences on July 1 shall be deemed to attain age 55 on
the |
| 23 | | preceding June 1.
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| 24 | | 8. A member retiring after the effective date of this |
| 25 | | amendatory Act
of 1998 shall receive a pension equal to 75% |
| 26 | | of average salary if the
member is qualified to receive a |