State of Illinois
92nd General Assembly
Legislation

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92_SB0513

 
                                               LRB9204427EGfg

 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 Sections 17-119 and 17-156.1 as follows:

 6        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
 7        Sec. 17-119.  Automatic annual increase in pension.  Each
 8    teacher  retiring  on or after September 1, 1959, is entitled
 9    to the annual increase in pension, defined herein,  while  he
10    is receiving a pension from the Fund.
11        1.  The term "base pension" means a service retirement or
12    disability retirement pension in the amount fixed and payable
13    at the date of retirement of a teacher.
14        2.   The  annual increase in pension shall be at the rate
15    of 1 1/2% of base pension. This increase shall first occur in
16    January of the year next following the first  anniversary  of
17    retirement. At such time the Fund shall pay the pro rata part
18    of  the  increase  for  the period from the first anniversary
19    date to the date of the first increase in pension.  Beginning
20    January 1, 1972, the rate of annual increase in pension shall
21    be 2% of the base pension. Beginning  January  1,  1979,  the
22    rate  of  annual  increase in pension shall be 3% of the base
23    pension.  Beginning January 1,  1990,  all  automatic  annual
24    increases payable under this Section shall be calculated as a
25    percentage  of  the  total pension payable at the time of the
26    increase, including all increases  previously  granted  under
27    this  Article,  notwithstanding  Section  17-157.   Beginning
28    January 1, 2002, all  annual  increases  in  pension  payable
29    under  this  Section shall be calculated at the rate of 4% of
30    the amount of pension payable at the time  of  the  increase,
31    including   all   increases  previously  granted  under  this
 
                            -2-                LRB9204427EGfg
 1    Article, notwithstanding Section 17-157.
 2        3.  An increase in pension shall be granted only  if  the
 3    retired teacher is age 60 or over. If the teacher attains age
 4    60  after  retirement, the increase in pension shall begin in
 5    January of the year following the 61st birthday. At such time
 6    the Fund also shall pay the pro rata  part  of  the  increase
 7    from  the  61st  birthday  to  the  date of first increase in
 8    pension.
 9        In addition to other increases which may be  provided  by
10    this  Section,  on  January  1,  1981  any  teacher  who  was
11    receiving  a  retirement pension on or before January 1, 1971
12    shall have his retirement pension then being  paid  increased
13    $1 per month for each year of creditable service.  On January
14    1,  1982,  any  teacher  whose retirement pension began on or
15    before January 1, 1977, shall  have  his  retirement  pension
16    then  being  paid  increased  $1  per  month for each year of
17    creditable service.
18        On January 1, 1987, any teacher whose retirement  pension
19    began  on  or  before January 1, 1977, shall have the monthly
20    retirement pension increased by an amount  equal  to  8¢  per
21    year  of  creditable  service  times the number of years that
22    have elapsed since the retirement pension began.
23    (Source: P.A. 90-566, eff. 1-2-98.)

24        (40 ILCS 5/17-156.1) (from Ch. 108 1/2, par. 17-156.1)
25        Sec. 17-156.1. Increases to retired members.   A  teacher
26    who  retired prior to September 1, 1959 on service retirement
27    pension who  was  at  least  55  years  of  age  at  date  of
28    retirement  and  had  at  least 20 years of validated service
29    shall be entitled to receive benefits under this Section.
30        These benefits shall be in an amount equal to  1-1/2%  of
31    the  total of (1) the initial service retirement pension plus
32    (2) any emeritus payment payable  under  Sections  34-86  and
33    34-87  of  the  School Code, multiplied by the number of full
 
                            -3-                LRB9204427EGfg
 1    years on pension.  This payment shall  begin  in  January  of
 2    1970.  An additional 1-1/2% shall be added in January of each
 3    year  thereafter.   Beginning  January  1,  1972  the rate of
 4    increase in the service retirement pension each year shall be
 5    2%.  Beginning January 1, 1979, the rate of increase  in  the
 6    service  retirement pension each year shall be 3%.  Beginning
 7    January 1, 1990, all automatic annual increases payable under
 8    this Section shall be calculated as a percentage of the total
 9    pension payable at the time of the  increase,  including  all
10    increases    previously    granted    under   this   Article,
11    notwithstanding Section 17-157.  Beginning January  1,  2002,
12    all  annual  increases  in pension payable under this Section
13    shall be calculated at the  rate  of  4%  of  the  amount  of
14    pension  payable  at  the time of the increase, including all
15    increases   previously   granted    under    this    Article,
16    notwithstanding Section 17-157.
17        A  pensioner  who  otherwise  qualifies for the aforesaid
18    benefit shall make a one-time payment  of  1%  of  the  final
19    monthly  average salary multiplied by the number of completed
20    years of service forming the basis of his service  retirement
21    pension  or,  if  the  pension  was not computed according to
22    average salary as  defined  in  Section  17-116,  1%  of  the
23    monthly  base  pension  multiplied  by  each complete year of
24    service forming the basis of his service retirement  pension.
25    Unless  the  pensioner  rejects the benefits of this Section,
26    such sum shall be deducted from the pensioner's December 1969
27    pension check and shall not be refundable.
28    (Source: P.A. 90-655, eff. 7-30-98.)

29        Section 90.  The State Mandates Act is amended by  adding
30    Section 8.25 as follows:

31        (30 ILCS 805/8.25 new)
32        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
 
                            -4-                LRB9204427EGfg
 1    and 8 of this Act, no reimbursement by the State is  required
 2    for  the  implementation  of  any  mandate  created  by  this
 3    amendatory Act of the 92nd General Assembly.

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.

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