94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4765

 

Introduced 1/18/2006, by Rep. Richard T. Bradley

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-119.1
30 ILCS 805/8.30 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. Eliminates the required contribution for converting past service to the augmented retirement formula, and provides for a refund of such contributions already paid. Also provides for recalculation of the pension and a lump sum payment of the difference between the augmented and unaugmented rates for certain pensioners. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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 changing
5 Section 17-119.1 as follows:
 
6     (40 ILCS 5/17-119.1)
7     Sec. 17-119.1. Optional increase in retirement annuity.
8     (a) Beginning on the effective date of this amendatory Act
9 of the 94th General Assembly, a member of the Fund shall may
10 qualify for the augmented rate under subdivision (b)(3) of
11 Section 17-116 for all years of creditable service earned
12 before July 1, 1998 without by making any the optional
13 contribution. Any such contribution already paid under this
14 Section shall be refunded by the Fund to the teacher or
15 pensioner (or, if deceased, to the teacher or pensioner's
16 survivor, beneficiary, or estate), together with interest at
17 the rate of 5%, compounded annually, from the date of payment
18 of the contribution to the date of refund; except that any such
19 contribution that has been paid by an employer under subsection
20 (e) shall be refunded to the employer. specified in subsection
21 (b); except that a member who retires on or after July 1, 1998
22 with at least 30 years of creditable service at retirement
23 qualifies for the augmented rate without making any
24 contribution under subsection (b).
25     Any member who retires on or after July 1, 1998 and before
26 the effective date of this amendatory Act of the 94th 92nd
27 General Assembly and whose pension was calculated using an
28 unaugmented rate may elect to have the pension recalculated
29 using the applicable augmented rate and to with at least 30
30 years of creditable service shall be paid a lump sum equal to
31 the amount he or she would have received under the augmented
32 rate minus the amount he or she actually received prior to the

 

 

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1 effective date of the recalculation.
2     The changes to this Section made by this amendatory Act of
3 the 94th General Assembly apply without regard to whether the
4 member was in service on or after its effective date and
5 notwithstanding Section 17-157.
6     A member may not elect to qualify for the augmented rate
7 for only a portion of his or her creditable service earned
8 before July 1, 1998.
9     (b) (Blank). The contribution shall be an amount equal to
10 1.0% of the member's highest salary rate in the 4 consecutive
11 school years immediately prior to but not including the school
12 year in which the application occurs, multiplied by the number
13 of years of creditable service earned by the member before July
14 1, 1998 or 20, whichever is less. This contribution shall be
15 reduced by 1.0% of that salary rate for every 3 full years of
16 creditable service earned by the member after June 30, 1998.
17 The contribution shall be further reduced at the rate of 25% of
18 the contribution (as reduced for service after June 30, 1998)
19 for each year of the member's total creditable service in
20 excess of 34 years. The contribution shall not in any event
21 exceed 20% of that salary rate.
22     The member shall pay to the Fund the amount of the
23 contribution as calculated at the time of application under
24 this Section. The amount of the contribution determined under
25 this subsection shall be recalculated at the time of
26 retirement, and if the Fund determines that the amount paid by
27 the member exceeds the recalculated amount, the Fund shall
28 refund the difference to the member with regular interest from
29 the date of payment to the date of refund.
30     The contribution required by this subsection shall be paid
31 in one of the following ways or in a combination of the
32 following ways that does not extend over more than 5 years:
33         (i) in a lump sum on or before the date of retirement;
34         (ii) in substantially equal installments over a period
35     of time not to exceed 5 years, as a deduction from salary
36     in accordance with Section 17-130.2;

 

 

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1         (iii) in substantially equal monthly installments over
2     a 24-month period, by a deduction from the annuitant's
3     monthly benefit.
4     (c) (Blank). If the member fails to make the full
5 contribution under this Section in a timely fashion, the
6 payments made under this Section shall be refunded to the
7 member, without interest. If the member (including a member who
8 has become an annuitant) dies before making the full
9 contribution, the payments made under this Section shall be
10 refunded to the member's designated beneficiary if there is no
11 survivor's or children's pension benefit payable. If there is a
12 survivor's or children's benefit payable, then all payments
13 made under this Section shall be retained by the Fund and all
14 such survivor's or children's benefits payable shall be
15 calculated as if all contributions required under this Section
16 have been paid in full.
17     (d) (Blank). For purposes of this Section and subsection
18 (b) of Section 17-116, optional creditable service established
19 by a member shall be deemed to have been earned at the time of
20 the employment or other qualifying event upon which the service
21 is based, rather than at the time the credit was established in
22 this Fund.
23     (e) (Blank). The contributions required under this Section
24 are the responsibility of the teacher and not the teacher's
25 employer. However, an employer of teachers may, after the
26 effective date of this amendatory Act of 1998, specifically
27 agree, through collective bargaining or otherwise, to make the
28 contributions required by this Section on behalf of those
29 teachers.
30 (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599,
31 eff. 6-28-02; 92-651, eff. 7-11-02.)
 
32     Section 90. The State Mandates Act is amended by adding
33 Section 8.30 as follows:
 
34     (30 ILCS 805/8.30 new)

 

 

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1     Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8
2 of this Act, no reimbursement by the State is required for the
3 implementation of any mandate created by this amendatory Act of
4 the 94th General Assembly.
 
5     Section 99. Effective date. This Act takes effect upon
6 becoming law.