95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4273

 

Introduced , by Rep. Robert S. Molaro

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-116   from Ch. 108 1/2, par. 17-116
30 ILCS 805/8.32 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that a teacher may receive a retirement pension at age 60 with 10 years of service. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB095 14496 AMC 40403 b

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

 

 

A BILL FOR

 

HB4273 LRB095 14496 AMC 40403 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 changing
5 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 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. Each teacher in service on or after July
15 1, 2008 with 10 or more but less than 20 years of service shall
16 be entitled to receive a service retirement pension upon or
17 after attainment of age 60.
18     (b) The service retirement pension for a teacher who
19 retires on or after June 25, 1971, at age 60 or over, shall be
20 calculated as follows:
21         (1) For creditable service earned before July 1, 1998
22     that has not been augmented under Section 17-119.1: 1.67%
23     for each of the first 10 years of service; 1.90% for each

 

 

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1     of the next 10 years of service; 2.10% for each year of
2     service in excess of 20 but not exceeding 30; and 2.30% for
3     each year of service in excess of 30, based upon average
4     salary as herein defined.
5         (2) For creditable service earned on or after July 1,
6     1998 by a member who has at least 30 years of creditable
7     service on July 1, 1998 and who does not elect to augment
8     service under Section 17-119.1: 2.3% of average salary for
9     each year of creditable service earned on or after July 1,
10     1998.
11         (3) For all other creditable service: 2.2% of average
12     salary for each year of creditable service.
13     (c) When computing such service retirement pensions, the
14 following conditions shall apply:
15         1. Average salary shall consist of the average annual
16     rate of salary for the 4 consecutive years of validated
17     service within the last 10 years of service when such
18     average annual rate was highest. In the determination of
19     average salary for retirement allowance purposes, for
20     members who commenced employment after August 31, 1979,
21     that part of the salary for any year shall be excluded
22     which exceeds the annual full-time salary rate for the
23     preceding year by more than 20%. In the case of a member
24     who commenced employment before August 31, 1979 and who
25     receives salary during any year after September 1, 1983
26     which exceeds the annual full time salary rate for the

 

 

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1     preceding year by more than 20%, an Employer and other
2     employers of eligible contributors as defined in Section
3     17-106 shall pay to the Fund an amount equal to the present
4     value of the additional service retirement pension
5     resulting from such excess salary. The present value of the
6     additional service retirement pension shall be computed by
7     the Board on the basis of actuarial tables adopted by the
8     Board. If a member elects to receive a pension from this
9     Fund provided by Section 20-121, his salary under the State
10     Universities Retirement System and the Teachers'
11     Retirement System of the State of Illinois shall be
12     considered in determining such average salary. Amounts
13     paid after the effective date of this amendatory Act of
14     1991 for unused vacation time earned after that effective
15     date shall not under any circumstances be included in the
16     calculation of average salary or the annual rate of salary
17     for the purposes of this Article.
18         2. Proportionate credit shall be given for validated
19     service of less than one year.
20         3. For retirement at age 60 or over the pension shall
21     be payable at the full rate.
22         4. For separation from service below age 60 to a
23     minimum age of 55, the pension shall be discounted at the
24     rate of 1/2 of one per cent for each month that the age of
25     the contributor is less than 60, but a teacher may elect to
26     defer the effective date of pension in order to eliminate

 

 

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1     or reduce this discount. This discount shall not be
2     applicable to any participant who has at least 34 years of
3     service or a retirement pension of at least 74.6% of
4     average salary on the date the retirement annuity begins.
5         5. No additional pension shall be granted for service
6     exceeding 45 years. Beginning June 26, 1971 no pension
7     shall exceed the greater of $1,500 per month or 75% of
8     average salary as herein defined.
9         6. Service retirement pensions shall begin on the
10     effective date of resignation, retirement, the day
11     following the close of the payroll period for which service
12     credit was validated, or the time the person resigning or
13     retiring attains age 55, or on a date elected by the
14     teacher, whichever shall be latest.
15         7. A member who is eligible to receive a retirement
16     pension of at least 74.6% of average salary and will attain
17     age 55 on or before December 31 during the year which
18     commences on July 1 shall be deemed to attain age 55 on the
19     preceding June 1.
20         8. A member retiring after the effective date of this
21     amendatory Act of 1998 shall receive a pension equal to 75%
22     of average salary if the member is qualified to receive a
23     retirement pension equal to at least 74.6% of average
24     salary under this Article or as proportional annuities
25     under Article 20 of this Code.
26 (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 

 

 

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1     Section 90. The State Mandates Act is amended by adding
2 Section 8.32 as follows:
 
3     (30 ILCS 805/8.32 new)
4     Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8
5 of this Act, no reimbursement by the State is required for the
6 implementation of any mandate created by this amendatory Act of
7 the 95th General Assembly.
 
8     Section 99. Effective date. This Act takes effect upon
9 becoming law.