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90_HB0373
40 ILCS 5/17-119 from Ch. 108 1/2, par. 17-119
40 ILCS 5/17-156.1 from Ch. 108 1/2, par. 17-156.1
30 ILCS 805/8.21 new
Amends the Chicago Teachers Article of the Pension Code
to increase the rate of automatic annual increase in pensions
from 3% to 4%. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
LRB9000574EGfg
LRB9000574EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 17-119 and 17-156.1 and to amend the State Mandates
3 Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 17-119 and 17-156.1 as follows:
8 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
9 Sec. 17-119. Automatic annual increase in pension. Each
10 teacher retiring on or after September 1, 1959, is entitled
11 to the annual increase in pension, defined herein, while he
12 is receiving a pension from the Fund.
13 1. The term "base pension" means a service retirement or
14 disability retirement pension in the amount fixed and payable
15 at the date of retirement of a teacher.
16 2. The annual increase in pension shall be at the rate
17 of 1 1/2% of base pension. This increase shall first occur in
18 January of the year next following the first anniversary of
19 retirement. At such time the Fund shall pay the pro rata part
20 of the increase for the period from the first anniversary
21 date to the date of the first increase in pension. Beginning
22 January 1, 1972, the rate of annual increase in pension shall
23 be 2% of the base pension. Beginning January 1, 1979, the
24 rate of annual increase in pension shall be 3% of the base
25 pension. Beginning January 1, 1991, all automatic annual
26 increases payable under this Section shall be calculated as a
27 percentage of the total pension payable at the time of the
28 increase, including all increases previously granted under
29 this Article, notwithstanding Section 17-157. Beginning
30 January 1, 1998, all annual increases in pension payable
31 under this Section shall be calculated at the rate of 4% of
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1 the amount of pension payable at the time of the increase,
2 including all increases previously granted under this
3 Article, notwithstanding Section 17-157.
4 3. An increase in pension shall be granted only if the
5 retired teacher is age 60 or over. If the teacher attains
6 age 60 after retirement, the increase in pension shall begin
7 in January of the year following the 61st birthday. At such
8 time the Fund also shall pay the pro rata part of the
9 increase from the 61st birthday to the date of first increase
10 in pension.
11 In addition to other increases which may be provided by
12 this Section, on January 1, 1981 any teacher who was
13 receiving a retirement pension on or before January 1, 1971
14 shall have his retirement pension then being paid increased
15 $1 per month for each year of creditable service. On January
16 1, 1982, any teacher whose retirement pension began on or
17 before January 1, 1977, shall have his retirement pension
18 then being paid increased $1 per month for each year of
19 creditable service.
20 On January 1, 1987, any teacher whose retirement pension
21 began on or before January 1, 1977, shall have the monthly
22 retirement pension increased by an amount equal to 8¢ per
23 year of creditable service times the number of years that
24 have elapsed since the retirement pension began.
25 (Source: P.A. 86-273.)
26 (40 ILCS 5/17-156.1) (from Ch. 108 1/2, par. 17-156.1)
27 Sec. 17-156.1. Increases to retired members. A teacher
28 who retired prior to September 1, 1959 on service retirement
29 pension who was at least 55 years of age at date of
30 retirement and had at least 20 years of validated service
31 shall be entitled to receive benefits under this Section.
32 These benefits shall be in an amount equal to 1-1/2% of
33 the total of (1) the initial service retirement pension plus
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1 (2) any emeritus payment payable under Sections 34-86 and
2 34-87 of the School Code, approved March 18, 1961, as
3 amended, multiplied by the number of full years on pension.
4 This payment shall begin in January of 1970. An additional
5 1-1/2% shall be added in January of each year thereafter.
6 Beginning January 1, 1972 the rate of increase in the service
7 retirement pension each year shall be 2%. Beginning January
8 1, 1979, the rate of increase in the service retirement
9 pension each year shall be 3%. Beginning January 1, 1990,
10 all automatic annual increases payable under this Section
11 shall be calculated as a percentage of the total pension
12 payable at the time of the increase, including all increases
13 previously granted under this Article, notwithstanding
14 Section 17-157. Beginning January 1, 1998, all annual
15 increases in pension payable under this Section shall be
16 calculated at the rate of 4% of the amount of pension payable
17 at the time of the increase, including all increases
18 previously granted under this Article, notwithstanding
19 Section 17-157.
20 A pensioner who otherwise qualifies for the aforesaid
21 benefit shall make a one-time payment of 1% of the final
22 monthly average salary multiplied by the number of completed
23 years of service forming the basis of his service retirement
24 pension or, if the pension was not computed according to
25 average salary as defined in Sec. 17-116, 1% of the monthly
26 base pension multiplied by each complete year of service
27 forming the basis of his service retirement pension. Unless
28 the pensioner rejects the benefits of this Section, such sum
29 shall be deducted from the pensioner's December 1969 pension
30 check and shall not be refundable.
31 (Source: P.A. 86-273.)
32 Section 90. The State Mandates Act is amended by adding
33 Section 8.21 as follows:
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1 (30 ILCS 805/8.21 new)
2 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1997.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.