Full Text of HB4273 95th General Assembly
HB4273 95TH GENERAL ASSEMBLY
|
|
|
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.
|
| |
|
|
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 |
|
|
|
HB4273 |
- 2 - |
LRB095 14496 AMC 40403 b |
|
| 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 |
|
|
|
HB4273 |
- 3 - |
LRB095 14496 AMC 40403 b |
|
| 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 |
|
|
|
HB4273 |
- 4 - |
LRB095 14496 AMC 40403 b |
|
| 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.)
|
|
|
|
HB4273 |
- 5 - |
LRB095 14496 AMC 40403 b |
|
| 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. |
|