093_HB2230

                                     LRB093 06794 LRD 06934 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:

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

 6        (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
 7        Sec. 17-116. Service retirement pension.
 8        (a)  Each  teacher  having  20  years  of  service   upon
 9    attainment  of age 55, or who thereafter attains age 55 shall
10    be entitled to a service retirement  pension  upon  or  after
11    attainment of age 55; and each teacher in service on or after
12    July  1,  1971,  with  5  or  more  but less than 20 years of
13    service shall be entitled to  receive  a  service  retirement
14    pension  upon or after attainment of age 62.  Each teacher in
15    service on or after July 1, 2003 with 10  or  more  but  less
16    than  20  years  of  service  shall  be entitled to receive a
17    service retirement pension upon or after  attainment  of  age
18    60.
19        (b)  The  service  retirement  pension  for a teacher who
20    retires on or after June 25, 1971, at age 60 or  over,  shall
21    be calculated as follows:
22             (1)  For  creditable  service  earned before July 1,
23        1998 that has not been augmented under Section  17-119.1:
24        1.67%  for  each  of the first 10 years of service; 1.90%
25        for each of the next 10 years of service; 2.10% for  each
26        year of service in excess of 20 but not exceeding 30; and
27        2.30%  for  each  year  of service in excess of 30, based
28        upon average salary as herein defined.
29             (2)  For creditable service earned on or after  July
30        1,  1998  by  a  member  who  has  at  least  30 years of
31        creditable service on July 1, 1998 and who does not elect
 
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 1        to augment  service  under  Section  17-119.1:   2.3%  of
 2        average salary for each year of creditable service earned
 3        on or after July 1, 1998.
 4             (3)  For  all  other  creditable  service:   2.2% of
 5        average salary for each year of creditable service.
 6        (c)  When computing such service retirement pensions, the
 7    following conditions shall apply:
 8             1.  Average salary  shall  consist  of  the  average
 9        annual  rate  of  salary  for  the 4 consecutive years of
10        validated service within the last  10  years  of  service
11        when  such  average  annual  rate  was  highest.   In the
12        determination of average salary for retirement  allowance
13        purposes,  for  members  who  commenced  employment after
14        August 31, 1979, that part of the  salary  for  any  year
15        shall  be  excluded  which  exceeds  the annual full-time
16        salary rate for the preceding year by more than 20%.   In
17        the  case  of  a  member  who commenced employment before
18        August 31, 1979 and who receives salary during  any  year
19        after  September  1,  1983  which exceeds the annual full
20        time salary rate for the preceding year by more than 20%,
21        an Employer and other employers of eligible  contributors
22        as  defined  in  Section  17-106 shall pay to the Fund an
23        amount equal to  the  present  value  of  the  additional
24        service  retirement  pension  resulting  from such excess
25        salary.  The present  value  of  the  additional  service
26        retirement  pension shall be computed by the Board on the
27        basis of actuarial tables adopted by  the  Board.   If  a
28        member  elects  to  receive  a  pension  from  this  Fund
29        provided  by  Section  20-121, his salary under the State
30        Universities  Retirement   System   and   the   Teachers'
31        Retirement  System  of  the  State  of  Illinois shall be
32        considered in determining such average  salary.   Amounts
33        paid  after  the effective date of this amendatory Act of
34        1991 for unused vacation time earned after that effective
 
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 1        date shall not under any circumstances be included in the
 2        calculation of average  salary  or  the  annual  rate  of
 3        salary for the purposes of this Article.
 4             2.  Proportionate   credit   shall   be   given  for
 5        validated service of less than one year.
 6             3.  For retirement at age 60  or  over  the  pension
 7        shall be payable at the full rate.
 8             4.  For  separation  from  service below age 60 to a
 9        minimum age of 55, the pension shall be discounted at the
10        rate of 1/2 of one per cent for each month that  the  age
11        of  the  contributor  is  less than 60, but a teacher may
12        elect to defer the effective date of pension in order  to
13        eliminate  or  reduce this discount.  This discount shall
14        not be applicable to any participant who has at least  34
15        years  of  service  or  a  retirement pension of at least
16        74.6% of  average  salary  on  the  date  the  retirement
17        annuity begins.
18             5.  No  additional  pension  shall  be  granted  for
19        service  exceeding  45 years.  Beginning June 26, 1971 no
20        pension shall exceed the greater of $1,500 per  month  or
21        75% of average salary as herein defined.
22             6.  Service  retirement  pensions shall begin on the
23        effective  date  of  resignation,  retirement,  the   day
24        following  the  close  of  the  payroll  period for which
25        service credit was validated,  or  the  time  the  person
26        resigning  or  retiring  attains  age  55,  or  on a date
27        elected by the teacher, whichever shall be latest.
28             7.  A member who is eligible to receive a retirement
29        pension of at least 74.6%  of  average  salary  and  will
30        attain  age  55  on or before December 31 during the year
31        which commences on July 1 shall be deemed to  attain  age
32        55 on the preceding June 1.
33             8.  A  member  retiring  after the effective date of
34        this amendatory Act of 1998 shall receive a pension equal
 
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 1        to 75% of average salary if the member  is  qualified  to
 2        receive  a  retirement pension equal to at least 74.6% of
 3        average salary under  this  Article  or  as  proportional
 4        annuities under Article 20 of this Code.
 5    (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)

 6        Section  90.  The State Mandates Act is amended by adding
 7    Section 8.27 as follows:

 8        (30 ILCS 805/8.27 new)
 9        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
10    and  8 of this Act, no reimbursement by the State is required
11    for  the  implementation  of  any  mandate  created  by  this
12    amendatory Act of the 93rd General Assembly.

13        Section 99. Effective date.  This Act takes  effect  upon
14    becoming law.