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92nd General Assembly

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Public Act 92-0566

HB2671 Enrolled                                LRB9202384EGmg

    AN ACT in relation to public employee benefits.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The State Finance Act is amended by changing
Section 15a as follows:

    (30 ILCS 105/15a) (from Ch. 127, par. 151a)
    Sec. 15a. Contractual services.   The  item  "contractual
services",  when  used  in  an  appropriation  act, means and
includes:
         (a)  Expenditures incident to  the  current  conduct
    and   operation   of   an   office,   department,  board,
    commission, institution or agency for postage and  postal
    charges,     surety    bond    premiums,    publications,
    subscriptions,   office   conveniences   and    services,
    exclusive of commodities as herein defined;
         (b)  Expenditures   for   rental   of   property  or
    equipment, repair or maintenance of property or equipment
    including   related   supplies,   equipment,   materials,
    services, replacement fixtures and repair parts,  utility
    services,  professional  or  technical  services,  moving
    expenses   incident   to  a  new  State  employment,  and
    transportation charges exclusive of  "travel"  as  herein
    defined;
         (c)  Expenditures  for  the  rental  of  lodgings in
    Springfield, Illinois and for the  payment  of  utilities
    used  in  connection  with  such lodgings for all elected
    State officials, who are required by Section 1, Article V
    of the Constitution of the State of Illinois to reside at
    the seat of government during their term of office;
         (d)  Expenditures  pursuant  to  multi-year   lease,
    lease-purchase  or  installment  purchase  contracts  for
    duplicating  equipment  authorized  by Section 5.1 of the
    Illinois Purchasing Act;
         (e)  Expenditures of $5,000 or less per project  for
    improvements  to  real  property  which,  except  for the
    operation  of  this  Section,  would  be  classified   as
    "permanent improvements" as defined in Section 21;
         (f)  Expenditures   pursuant  to  multi-year  lease,
    lease-purchase  or  installment  purchase  contracts  for
    land, permanent improvements or fixtures.
    The  item  "contractual  services"  does  not,   however,
include any expenditures included in "operation of automotive
equipment" as defined in Section 24.2.
    The  item  "contractual  services"  does  not include any
expenditures for professional, technical, or  other  services
performed  for a State agency under a contract executed after
July 1, the effective date of this amendatory Act of 1992  by
a  person  who  was  formerly employed by that agency and has
received  any  early  retirement  incentive   under   Section
14-108.3  or  16-133.3  of the Illinois Pension Code based on
retirement before  1993,  unless  the  official  or  employee
executing  the contract on behalf of the agency has certified
that the person performing the services either (i)  possesses
unique  expertise,  or  (ii) is essential to the operation of
the agency.  This certification must be filed with the Office
of  the  Auditor  General  prior  to  the  execution  of  the
contract, and shall be made  available  by  that  Office  for
public   inspection  and  copying.    The  item  "contractual
services" does not include any expenditures for professional,
technical, or other services performed  for  a  State  agency
under  a  contract  executed after the effective date of this
amendatory Act of the 92nd General Assembly by a  person  who
has  received  any  early  retirement incentive under Section
14-108.3 or 16-133.3 of the Illinois Pension  Code  based  on
retirement in 2002 or later.  A contract not payable from the
contractual services item because of this paragraph shall not
be  payable  from  any  other item of appropriation.  For the
purposes of this paragraph, the term  "agency"  includes  all
offices,  boards,  commissions,  departments,  agencies,  and
institutions of State government.
(Source: P.A. 91-357, eff. 7-29-99.)

    Section  10.   The  Illinois  Pension  Code is amended by
changing Sections 14-105, 14-108.3 and 16-133.3 as follows:

    (40 ILCS 5/14-105) (from Ch. 108 1/2, par. 14-105)
    Sec. 14-105.  Service credit for which contributions  are
not required.
    (a)  Each  employee  in  service on December 31, 1943, or
then on leave of absence not in conflict with  Civil  Service
rules,  if such leave had not extended for more than one year
continuously, or who is otherwise entitled to  prior  service
credit,  who  becomes a member shall file with the board on a
form supplied by it, a  detailed  statement  of  all  service
rendered  prior    to  January  1,  1944, for which credit is
claimed.
    Upon verification thereof, the board shall issue a  prior
service  certificate  certifying  length of prior service.  A
prior service certificate shall  be  conclusive  so  long  as
membership continues, provided, that a member may, within one
year from the date of original issuance of the certificate or
modification  thereof, request the board to modify or correct
the certificate.
    When membership ceases, a prior service certificate shall
become void, and shall be revived only under  the  conditions
specified in this Article.
    In  the  computation  of  prior  service,  the  following
schedule shall govern: 9 months of service or more during any
fiscal year constitutes a year of service; 6 to 9 months, 3/4
of  a year; 3 to 6 months, 1/2 year; less than 3 months shall
not be considered.  Credit  shall  not  be  allowed  for  any
period  of  absence  without compensation or for less than 15
days service in any month, nor shall more than  one  year  of
service  be  creditable  for  all service rendered in any one
fiscal year.
    (b)  Any member shall receive credit for military service
provided all of the following conditions are met:
         (1)  the member was a State employee within 6 months
    immediately prior to entry into military service;
         (2)  the member returns as a State  employee  within
    15 months after his unconditional discharge other than by
    dishonorable discharge; and
         (3)  the  member  establishes creditable service for
    State employment immediately prior to and  following  the
    military service.
    The  total  amount of creditable military service for any
member during his entire term of service shall not  exceed  5
years in the aggregate, except that any member who on July 1,
1963,  had  accrued more than 5 years of such credit shall be
entitled to the total amount of such accrued credit.
    (c)  Any active member of the System who (1) was  earning
eligible  creditable  service  under  subdivision  (b)(12) of
Section 14-110 on January 1, 1992, and (2) has  at  least  17
years  of  creditable  service  under  Article  5, and (3) is
eligible to transfer that creditable service to  this  System
under  subsection  (c) of Section 5-236 of this Code, and (4)
applies in writing for transfer of that creditable service to
this System within 30 days after the effective date  of  this
amendatory  Act  of  1993,  shall receive eligible creditable
service in this  System  for  that  creditable  service  upon
receipt  by  this  System  of  the  amounts transferred under
Section 5-236.  No additional contributions shall be required
for the transferred service.
    (d)  Any active member of the system who (1) was  earning
eligible  creditable  service  under  subdivision  (b)(5)  of
Section 14-110 on January 1, 1992, and (2) has no more than 7
years of creditable service as a municipal conservator of the
peace  under  Article 7, and (3) is eligible to transfer that
creditable service to this System  under  subsection  (a)  of
Section   7-139.7   of  this  Code,  and  (4)  makes  written
notification to  this  System  by  January  31,  1994,  shall
receive  eligible  creditable service in this System for that
service  upon  receipt  by  this  System   of   the   amounts
transferred    under    Section   7-139.7.    No   additional
contributions shall be required for the transferred service.
    (e)  Any member  may  establish  creditable  service  and
earnings  credit  for  a  period  of voluntary or involuntary
furlough,  not  exceeding  5  days,  beginning  on  or  after
December 1, 2001 and ending before January 1, 2003,  that  is
utilized  as  a means of addressing a State fiscal emergency.
To receive this credit, the member must apply in  writing  to
the  System or the member's employer before July 1, 2005.  No
additional contribution is required for this credit.
(Source: P.A. 87-1265.)

    (40 ILCS 5/14-108.3)
    Sec. 14-108.3.  Early retirement incentives.
    (a)  To be eligible for the  benefits  provided  in  this
Section, a person must:
         (1)  be  a  member  of  this  System who, on any day
    during June, 2002, is (i) in active payroll status  in  a
    position  of  employment  with a department and an active
    contributor  to  this  System  with   respect   to   that
    employment,  and  terminates  that  employment before the
    retirement annuity under this Article begins, or (ii)  on
    layoff  status  from  such  a  position  with  a right of
    re-employment or recall to service,  or  (iii)  receiving
    benefits  under  Section  14-123, 14-123.1 or 14-124, but
    only if the member has not been receiving those  benefits
    for  a  continuous  period of more than 2 years as of the
    date of application;
         (2)  not have received any retirement annuity  under
    this Article beginning earlier than August 1, 2002;
         (3)  file  with  the Board on or before December 31,
    2002  a  written  application  requesting  the   benefits
    provided in this Section;
         (4)  terminate  employment  under  this  Article  no
    later  than  December  31,  2002 (or the date established
    under subsection (d), if applicable);
         (5)  by the date of termination of service, have  at
    least  8  years of creditable service under this Article,
    without the use of  any  creditable  service  established
    under this Section;
         (6)  by  the date of termination of service, have at
    least 5 years  of  membership  service  earned  while  an
    employee  under  this Article, which may include military
    service for which credit  is  established  under  Section
    14-105(b), service during the qualifying period for which
    credit   is  established  under  Section  14-104(a),  and
    service for which credit has been established by repaying
    a refund under Section  14-130,  but  shall  not  include
    service  for  which any other optional service credit has
    been established; and
         (7)  not receive any early retirement benefit  under
    Section 16-133.3 of this Code.
    (b)    An  eligible person may establish up to 5 years of
creditable service under this Article, in increments  of  one
month,  by  making  the contributions specified in subsection
(c).  In addition,  for  each  month  of  creditable  service
established  under this Section, a person's age at retirement
shall be deemed to be one month older than it actually is.
    The creditable service established under this Section may
be  used  for  all  purposes  under  this  Article  and   the
Retirement Systems Reciprocal Act, except for the computation
of  final average compensation under Section 14-103.12 or the
determination of compensation under this or any other Article
of this Code.
    The age enhancement established under  this  Section  may
not  be  used  to  enable  any  person  to  begin receiving a
retirement annuity calculated  under  Section  14-110  before
actually  attaining age 50 (without any age enhancement under
this Section).  The age enhancement  established  under  this
Section may be used for all other purposes under this Article
(including  calculation of a proportionate annuity payable by
this System under the  Retirement  Systems  Reciprocal  Act),
except  for  purposes  of  the level income option in Section
14-112, the reversionary annuity under  Section  14-113,  and
the required distributions under Section 14-121.1.
    The age enhancement established under this Section may be
used in determining benefits payable under Article 16 of this
Code  under  the  Retirement  Systems  Reciprocal Act, if the
person has at least 5 years of service credit in the  Article
16  system that was earned while participating in that system
as a teacher (as defined in Section  16-106)  employed  by  a
department   (as   defined   in   Section  14-103.04).    Age
enhancement  established  under  this   Section   shall   not
otherwise be used in determining benefits payable under other
Articles of this Code under the Retirement Systems Reciprocal
Act.
    (c)  For  all  creditable  service established under this
Section,  a  person  must  pay  to  the  System  an  employee
contribution to be determined by the  System,  based  on  the
member's  rate  of  compensation on June 1, 2002 (or the last
date before June 1, 2002 for which a rate can be  determined)
and  the  retirement  contribution  rate in effect on June 1,
2002 for the member (or for  members  with  the  same  social
security and alternative formula status as the member).
    If the member receives a lump sum payment for accumulated
vacation,  sick leave and personal leave upon withdrawal from
service, and the net amount of that lump sum  payment  is  at
least  as  great  as  the amount of the contribution required
under this Section, the entire contribution must be  paid  by
the  employee by payroll deduction.  If there is no such lump
sum payment, or if it is less than the contribution  required
under  this Section, the member shall make an initial payment
by payroll deduction, equal to the net amount of the lump sum
payment for accumulated vacation, sick  leave,  and  personal
leave,  and  have  the  remaining  amount  due  treated  as a
reduction from the retirement annuity  in  24  equal  monthly
installments  beginning  in the month in which the retirement
annuity takes effect.  The required contribution may be  paid
as  a  pre-tax  deduction  from  earnings.   For  federal and
Illinois tax  purposes,  the  monthly  amount  by  which  the
annuitant's  benefit  is  reduced  shall  not be treated as a
contribution by the annuitant, but rather as a  reduction  of
the annuitant's monthly benefit.
    (c-5)    The  reduction in retirement annuity provided in
subsection (c) of  Section  14-108  does  not  apply  to  the
annuity of a person who retires under this Section.  A person
who  has  received  any age enhancement or creditable service
under  this  Section  may  begin  to  receive  an   unreduced
retirement annuity upon attainment of age 55 with at least 25
years  of  creditable  service (including any age enhancement
and creditable service established under this Section).
    (d)  In order to ensure that the efficient  operation  of
State  government  is  not  jeopardized  by  the simultaneous
retirement of large numbers of key personnel, the director or
other head of a department may, for  key  employees  of  that
department,   extend  the  December  31,  2002  deadline  for
terminating employment  under  this  Article  established  in
subdivision  (a)(4)  of this Section to a date not later than
April 30, 2003 by so  notifying  the  System  in  writing  by
December 31, 2002.
    (e)  Notwithstanding  Section  14-111,  a  person who has
received any age enhancement or creditable service under this
Section and who reenters service under this Article (or as an
employee of a department under Article 16) other  than  as  a
temporary  employee thereby forfeits that age enhancement and
creditable service  and  is  entitled  to  a  refund  of  the
contributions made pursuant to this Section.
    (f)  The   System  shall  determine  the  amount  of  the
increase in unfunded accrued  liability  resulting  from  the
granting  of  early  retirement incentives under this Section
and shall report that amount to the Governor and the  Pension
Laws Commission on or before November 15, 2003.  The increase
in  liability reported under this subsection (f) shall not be
included  in  the   calculation   of   the   required   State
contribution under Section 14-131.
    (g)  The  System shall determine the amount of the annual
State  contribution  necessary  to  amortize   on   a   level
dollar-payment  basis,  over  a  period  of  10 years at 8.5%
interest,  compounded  annually,  an  amount  equal  to   the
increase  in  unfunded  accrued  liability  determined  under
subsection  (f)  minus $70,000,000.  The System shall certify
the amount of this annual State contribution to the Governor,
the State Comptroller, the Bureau  of  the  Budget,  and  the
Pension Laws Commission on or before November 15, 2003.
    In addition to the contributions otherwise required under
this  Article,  the  State  shall  appropriate and pay to the
System (1) an amount equal to  $70,000,000  in  State  fiscal
year  2004 and (2) in each of State fiscal years 2005 through
2013, an  amount  equal  to  the  annual  State  contribution
certified by the System under this subsection (g).
    (h)  The  Pension  Laws  Commission  shall  determine and
report to the General Assembly, on or before January 1,  2004
and  annually  thereafter through the year 2013, its estimate
of (1) the annual amount of  payroll  savings  likely  to  be
realized  by the State as a result of the early retirement of
persons receiving  early  retirement  incentives  under  this
Section  and  (2) the net annual savings or cost to the State
from the program of early retirement incentives created under
this Section.
    The  System,  the  Department   of   Central   Management
Services, the Bureau of the Budget, and all other departments
shall  provide  to  the  Commission  any  assistance that the
Commission may request with respect to its reports under this
Section.  The Commission may require departments  to  provide
it  with  any  information  that it deems necessary or useful
with respect to its reports  under  this  Section,  including
without  limitation  information about (1) the final earnings
of  former  department  employees  who  elected  to   receive
benefits  under  this  Section,  (2)  the earnings of current
department employees holding the positions vacated by persons
who elected to receive benefits under this Section,  and  (3)
positions  vacated by persons who elected to receive benefits
under this Section that have not yet been refilled.
    (i)  The changes made to this Section by this  amendatory
Act  of the 92nd General Assembly do not apply to persons who
retired under this Section on or before May 1, 1992.
    (a)  To be eligible for the  benefits  provided  in  this
Section, a person must:
         (1)  be  a  member  of  this  System who, on any day
    during May, 1991, is (i) in active payroll  status  in  a
    position  of  employment  with  a  department, or (ii) on
    layoff status from  such  a  position  with  a  right  of
    re-employment  or recall to service, or (iii) on leave of
    absence from such a position, but only if the  member  on
    leave  has  not  been  receiving  benefits  under Section
    14-123, 14-123.1 or 14-124 for a continuous period  of  2
    years or more as of the date of application;
         (2)  have not retired under this Article;
         (3)  file  with the Board before December 1, 1991, a
    written application requesting the benefits  provided  in
    this Section;
         (4)  establish  eligibility  to receive a retirement
    annuity under this Article (for  which  purpose  any  age
    enhancement  or  creditable  service  received under this
    Section may be used) and elect to receive the  retirement
    annuity  beginning  not earlier than the first day of the
    month following the month in which this amendatory Act of
    1991 takes effect, and not later than January 1, 1992 (or
    the date established under subsection (e) if applicable);
         (5)  have attained age 50 or accumulated 30 or  more
    years  of  creditable service (without the use of any age
    enhancement or creditable  service  received  under  this
    Section) by December 31, 1991.
    (b)  An  eligible  person  may establish up to 5 years of
creditable service under this Article, in increments  of  one
month,  by  making  the contributions specified in subsection
(c).  In addition,  for  each  month  of  creditable  service
established  under this Section, a person's age at retirement
shall be deemed to be one month older than it actually is.
    The creditable service established under this Section may
be  used  for  all  purposes  under  this  Article  and   the
Retirement Systems Reciprocal Act, except for the computation
of final average compensation under Section 14-103.12, or the
determination of compensation under this or any other Article
of this Code.
    The age enhancement established under this Section may be
used   for   all   purposes  under  this  Article  (including
calculation of a proportionate annuity payable by this System
under the Retirement  Systems  Reciprocal  Act),  except  for
purposes  of  the  level income option in Section 14-112, the
reversionary annuity under Section 14-113, and  the  required
distributions   under   Section   14-121.1.    However,   age
enhancement  established under this Section shall not be used
in determining benefits payable under other Articles of  this
Code under the Retirement Systems Reciprocal Act.
    (c)  For  all  creditable  service established under this
Section,  a  person  must  pay  to  the  System  an  employee
contribution to be determined by the  System,  based  on  the
member's  final  rate  of  compensation  and  one-half of the
retirement contribution rate in effect for the member on  the
date of withdrawal.
    If the member receives a lump sum payment for accumulated
vacation,  sick leave and personal leave upon withdrawal from
service, and the net amount of that lump sum  payment  is  at
least  as  great  as  the amount of the contribution required
under this Section, the entire contribution (or so much of it
as does not exceed the contribution  limitations  of  Section
415 of the Internal Revenue Code of 1986) must be paid by the
employee  before  the  retirement annuity may become payable.
If there is no such lump sum payment, or if it is  less  than
the  contribution  required under this Section the member may
either pay the  entire  contribution  before  the  retirement
annuity  becomes  payable,  or  may  instead  make an initial
payment before the retirement annuity becomes payable,  equal
to  the  net  amount  of the lump sum payment for accumulated
vacation, sick leave and personal leave (or so much of it  as
does  not  exceed the contribution limitations of Section 415
of the Internal Revenue Code of 1986), and have the remaining
amount due deducted from the retirement annuity in  24  equal
monthly  installments  beginning in January of 1992 or in the
month in which the retirement annuity takes effect, whichever
is later.
    However, if the net amount of the lump  sum  payment  for
accumulated vacation, sick leave and personal leave equals or
exceeds the contribution required under this Section, but the
required  contribution  exceeds  an  applicable  contribution
limitation  contained  in Section 415 of the Internal Revenue
Code of 1986, then the amount of the contribution  in  excess
of  the  Section  415 limitation shall instead be paid by the
annuitant in January of 1992 or in the  month  in  which  the
retirement annuity takes effect, whichever is later.  If this
additional  amount  is  not  paid as required, the retirement
annuity shall be suspended until the required contribution is
received.
    (d)  In the event that the age enhancement or  creditable
service  received  under this Section result in  a retirement
benefit  that  exceeds  any  applicable  benefit   limitation
contained  in  Section  415  of  the Internal Revenue Code of
1986, the amount of the retirement benefit that  exceeds  the
Section  415  limitation  shall not be paid for any period to
which the limitation is applicable.  If no contributions  are
otherwise  due  in 1992 and 1993 under subsection (c) from an
annuitant whose retirement benefits are subject to limitation
under this subsection, then 10% of the contribution otherwise
required  under  subsection  (c)  to  be  paid   before   the
retirement   annuity   becomes   payable   shall  instead  be
contributed to the System by  the  annuitant  in  January  of
1993.
    (e)  In order to ensure that the public health and safety
are  not  jeopardized by the simultaneous retirement of large
numbers of critical personnel, the Director of  State  Police
(for  State  police  officers  under  the Department of State
Police) and the Director of Corrections (for  security  staff
at  adult  and  juvenile institutions under the Department of
Corrections) may extend the January 1, 1992 deadline for  the
effective   date  of  a  retirement  annuity  established  in
subdivision (a)(4) of this Section to a date not  later  than
May  1,  1992, by so notifying the System in writing no later
than December 31, 1991.
    In order to ensure that the efficient  operation  of  the
courts  of  this State is not jeopardized by the simultaneous
retirement of large numbers of  court  reporters,  the  Chief
Justice of the Illinois Supreme Court may, for official court
reporters  employed  in  the courts of this State, extend the
January  1,  1992  deadline  for  the  effective  date  of  a
retirement annuity established in subdivision (a)(4) of  this
Section to a date not later than May 1, 1992, by so notifying
the System in writing no later than December 31, 1991.
    (f)  Notwithstanding Section 14-111, an annuitant who has
received any age enhancement or creditable service under this
Section  and  who  reenters  service under this Article other
than as a temporary employee shall thereby forfeit  such  age
enhancement  and creditable service, and become entitled to a
refund of the contributions made pursuant to this Section.
(Source: P.A. 87-14.)

    (40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3)
    Sec. 16-133.3.  Early  retirement  incentives  for  State
employees.
    (a)  To  be  eligible  for  the benefits provided in this
Section, a person must:
         (1)  be a member of this  System  who,  on  any  day
    during  June,  2002, is (i) in active payroll status as a
    full-time teacher employed by a department and an  active
    contributor   to   this   System  with  respect  to  that
    employment, or (ii) on layoff status from such a position
    with a right of re-employment or recall  to  service,  or
    (iii) receiving a disability benefit under Section 16-149
    or  16-149.1,  but  only  if  the  member  has  not  been
    receiving  that  benefit  for a continuous period of more
    than 2 years as of the date of application;
         (2)  not have received any retirement annuity  under
    this Article beginning earlier than August 1, 2002;
         (3)  file  with  the Board on or before December 31,
    2002  a  written  application  requesting  the   benefits
    provided in this Section;
         (4)  terminate  employment  under  this  Article  no
    later  than  December  31,  2002 (or the date established
    under subsection (d), if applicable);
         (5)  by the date of termination of service, have  at
    least  8  years of creditable service under this Article,
    without the use of  any  creditable  service  established
    under this Section;
         (6)  by  the date of termination of service, have at
    least  5   years   of   service   credit   earned   while
    participating  in  the  System as a teacher employed by a
    department; and
         (7)  not receive any early retirement benefit  under
    Section 14-108.3 of this Code.
    For  the  purposes  of this Section, "department" means a
department as defined in Section  14-103.04  that  employs  a
teacher as defined in this Article.
    (b)  An  eligible  person  may establish up to 5 years of
creditable  service  under  this  Article   by   making   the
contributions  specified in subsection (c).  In addition, for
each period of  creditable  service  established  under  this
Section,  a  person's age at retirement shall be deemed to be
enhanced by an equivalent period.
    The creditable service established under this Section may
be  used  for  all  purposes  under  this  Article  and   the
Retirement Systems Reciprocal Act, except for the computation
of  final  average  salary,  the  determination  of salary or
compensation under this Article or any other Article of  this
Code,   or  the  determination  of  eligibility  for  or  the
computation of benefits under Section 16-133.2.
    The age enhancement established under this Section may be
used  for  all  purposes  under   this   Article   (including
calculation of a proportionate annuity payable by this System
under  the  Retirement  Systems  Reciprocal  Act), except for
purposes of a retirement annuity under Section  16-133(a)(A),
a  reversionary  annuity  under  Section 16-136, the required
distributions under Section 16-142.3, and  the  determination
of  eligibility  for  or  the  computation  of benefits under
Section 16-133.2.  Age  enhancement  established  under  this
Section  may  be  used  in determining benefits payable under
Article  14  of  this  Code  under  the  Retirement   Systems
Reciprocal  Act (subject to the limitations on the use of age
enhancement provided in Section  14-108.3);  age  enhancement
established   under   this  Section  shall  not  be  used  in
determining benefits payable under  other  Articles  of  this
Code under the Retirement Systems Reciprocal Act.
    (c)  For  all  creditable  service established under this
Section,  a  person  must  pay  to  the  System  an  employee
contribution to be determined by the System, equal to 9.0% of
the member's highest annual salary rate that would be used in
the  determination  of  the  average  salary  for  retirement
annuity purposes if  the  member  retired  immediately  after
withdrawal,  for  each year of creditable service established
under this Section.
    If the member receives a lump sum payment for accumulated
vacation, sick leave, and personal leave upon withdrawal from
service, and the net amount of that lump sum  payment  is  at
least  as  great  as  the amount of the contribution required
under this Section, the entire contribution must be  paid  by
the  employee by payroll deduction.  If there is no such lump
sum payment, or if it is less than the contribution  required
under  this Section, the member shall make an initial payment
by payroll deduction, equal to the net amount of the lump sum
payment for accumulated vacation, sick  leave,  and  personal
leave,  and  have  the  remaining  amount  due  treated  as a
reduction from the retirement annuity  in  24  equal  monthly
installments  beginning  in the month in which the retirement
annuity takes effect.  The required contribution may be  paid
as a pre-tax deduction from earnings.
    (d)  In  order  to ensure that the efficient operation of
State government  is  not  jeopardized  by  the  simultaneous
retirement of large numbers of key personnel, the director or
other  head  of  a  department may, for key employees of that
department,  extend  the  December  31,  2002  deadline   for
terminating  employment  under  this  Article  established in
subdivision (a)(4) of this Section to a date not  later  than
April  30,  2003  by  so  notifying  the System in writing by
December 31, 2002.
    (e)  A person who has received  any  age  enhancement  or
creditable  service  under  this  Section  and  who  reenters
contributing  service  under this Article or Article 14 shall
thereby forfeit that age enhancement and creditable  service,
and  become  entitled  to  a refund of the contributions made
pursuant to this Section.
    (f)  The  System  shall  determine  the  amount  of   the
increase  in  unfunded  accrued  liability resulting from the
granting of early retirement incentives  under  this  Section
and  shall report that amount to the Governor and the Pension
Laws Commission on or before November 15, 2003.  The increase
in liability reported under this subsection (f) shall not  be
included   in   the   calculation   of   the  required  State
contribution under Section 16-158.
    (g)  The System shall determine the amount of the  annual
State   contribution   necessary   to  amortize  on  a  level
dollar-payment basis, over a  period  of  10  years  at  8.5%
interest,   compounded  annually,  an  amount  equal  to  the
increase  in  unfunded  accrued  liability  determined  under
subsection (f) minus $1,000,000.  The  System  shall  certify
the amount of this annual State contribution to the Governor,
the  State  Comptroller,  the  Bureau  of the Budget, and the
Pension Laws Commission on or before November 15, 2003.
    In addition to the contributions otherwise required under
this Article, the State shall  appropriate  and  pay  to  the
System (1) an amount equal to $1,000,000 in State fiscal year
2004 and (2) in each of State fiscal years 2005 through 2013,
an amount equal to the annual State contribution certified by
the System under this subsection (g).
    (h)  The  Pension  Laws  Commission  shall  determine and
report to the General Assembly, on or before January 1,  2004
and  annually  thereafter through the year 2013, its estimate
of (1) the annual amount of  payroll  savings  likely  to  be
realized  by the State as a result of the early retirement of
persons receiving  early  retirement  incentives  under  this
Section  and  (2) the net annual savings or cost to the State
from the program of early retirement incentives created under
this Section.
    The  System,  the  Department   of   Central   Management
Services, the Bureau of the Budget, and all other departments
shall  provide  to  the  Commission  any  assistance that the
Commission may request with respect to its reports under this
Section.  The Commission may require departments  to  provide
it  with  any  information  that it deems necessary or useful
with respect to its reports  under  this  Section,  including
without  limitation  information about (1) the final earnings
of  former  department  employees  who  elected  to   receive
benefits  under  this  Section,  (2)  the earnings of current
department employees holding the positions vacated by persons
who elected to receive benefits under this Section,  and  (3)
positions  vacated by persons who elected to receive benefits
under this Section that have not yet been refilled.
    (i)  The changes made to this Section by this  amendatory
Act  of the 92nd General Assembly do not apply to persons who
retired under this Section on or before May 1, 1992.
    (a)  To be eligible for the  benefits  provided  in  this
Section, a member must:
         (1)  be  a  member  of  this  System who, on any day
    during May, 1991, is (i) in active payroll  status  as  a
    full-time   teacher   employed   by   the  Department  of
    Rehabilitation Services, the Department  of  Corrections,
    the   Department   of  Mental  Health  and  Developmental
    Disabilities, the  Teachers'  Retirement  System  of  the
    State  of  Illinois, the State Board of Education, or the
    Illinois Purchased Care Review Board, or (ii)  on  layoff
    status from such a position with a right of re-employment
    or recall to service, or (iii) on a leave of absence from
    such  a position, but only if the member on leave has not
    been receiving benefits under Section 16-149 or  16-149.1
    for a continuous period of 2 years or more as of the date
    of application;
         (2)  have  never  previously  received  a retirement
    annuity under this Article or Article 14, 15 or 17;
         (3)  file with the Board before December 1, 1991,  a
    written  application  requesting the benefits provided in
    this Section;
         (4)  be eligible no later than January 1,  1992,  to
    receive  a  retirement  annuity  under  this Article (for
    which purpose any age enhancement or  creditable  service
    received  under  this  Section  may be used) and elect to
    receive the retirement annuity beginning not earlier than
    the first day of the month following the month  in  which
    this  amendatory  Act of 1991 takes effect, and not later
    than January 1, 1992;
         (5)  have attained age 50 (without the  use  of  any
    age  enhancement received under this Section) by December
    31, 1991;
         (6)  have at least 5  years  of  creditable  service
    under  this  System  or  any of the participating systems
    under the Retirement Systems Reciprocal Act (without  the
    use   of  any  creditable  service  received  under  this
    Section) by the effective date of the retirement annuity;
    and
         (7)  have  paid  all  applicable  contributions   as
    required   by   this  Section;  however,  the  date  such
    contributions are received by the  System  shall  not  be
    considered   in   determining   the   effective  date  of
    retirement.
    (b)  An eligible person may establish up to  5  years  of
creditable   service   under   this  Article  by  making  the
contributions specified in subsection (c).  In addition,  for
each  period  of  creditable  service  established under this
Section a person shall have his  or  her  age  at  retirement
deemed enhanced by an equivalent period.
    The creditable service established under this Section may
be   used  for  all  purposes  under  this  Article  and  the
Retirement Systems Reciprocal Act, except for the computation
of final average  salary,  the  determination  of  salary  or
compensation  under this or any other Article of the Code, or
the determination of eligibility for and the  computation  of
benefits under Section 16-133.2 of this Article.
    The age enhancement established under this Section may be
used   for   all   purposes  under  this  Article  (including
calculation of a proportionate annuity payable by this System
under the Retirement  Systems  Reciprocal  Act),  except  for
purposes  of a reversionary annuity under Section 16-136, the
retirement annuity under Section 16-133(a)(A),  the  required
distributions  under  Section 16-142.3, and the determination
of eligibility for and  the  computation  of  benefits  under
Section  16-133.2  of this Article.  However, age enhancement
established  under  this  Section  shall  not  be   used   in
determining  benefits  payable  under  other Articles of this
Code under the Retirement Systems Reciprocal Act.
    (c)  For all creditable service  established  under  this
Section,  a  member  must  pay  to  the  System  an  employee
contribution  consisting of 4% of the member's highest annual
salary rate used in the determination of the  average  salary
for  retirement  annuity  purposes  for  each year creditable
service has been increased under this Section.
    If the member receives a lump sum payment for accumulated
vacation, sick leave and personal leave upon withdrawal  from
service,  and  the  net amount of that lump sum payment is at
least as great as the amount  of  the  contribution  required
under  this  Section, the entire contribution must be paid by
the  employee  before  the  retirement  annuity  may   become
payable.   If  there is no such lump sum payment, or if it is
less than the contribution required under this  Section,  the
member  may  either  pay  the  entire contribution before the
retirement annuity becomes payable, or may  instead  make  an
initial   payment   before  the  retirement  annuity  becomes
payable, equal to the net amount of the lump sum payment  for
accumulated vacation, sick leave and personal leave, and have
the remaining amount due deducted from the retirement annuity
in  24  equal  monthly  installments  beginning in January of
1992.
    (d)  An annuitant who has received any age enhancement or
creditable service  under  this  Section  and  who  re-enters
contributing  service under this Article or Article 14, 15 or
17, shall thereby forfeit such age enhancement and creditable
service,  and  upon  re-retirement  the  annuity   shall   be
recomputed.   Upon  forfeiting  creditable service under this
subsection, a person shall be entitled to  a  refund  of  the
contribution paid under this Section.
(Source: P.A. 89-21, eff. 7-1-95.)
    Section   15.    The   State   Pension  Funds  Continuing
Appropriation  Act  is  amended  by  adding  Section  1.6  as
follows:

    (40 ILCS 15/1.6 new)
    Sec. 1.6. Appropriations for early retirement programs.
    (a)  There  is  hereby  appropriated  from  the   General
Revenue  Fund  to  the  State Employees' Retirement System of
Illinois, on a continuing  annual  basis  in  each  of  State
fiscal  years 2004 through 2013, the amount, if any, by which
the total available amount of  all  other  appropriations  to
that retirement system for the payment of State contributions
under  subsection  (g)  of  Section  14-108.3 of the Illinois
Pension Code in that fiscal  year  is  less  than  the  total
amount  of  State contributions required for that fiscal year
under that subsection (g).
    (b)  There  is  hereby  appropriated  from  the   General
Revenue  Fund to the Teachers' Retirement System of the State
of Illinois, on a continuing annual basis in  each  of  State
fiscal  years 2004 through 2013, the amount, if any, by which
the total available amount of  all  other  appropriations  to
that retirement system for the payment of State contributions
under  subsection  (g)  of  Section  16-133.3 of the Illinois
Pension Code in that fiscal  year  is  less  than  the  total
amount  of  State contributions required for that fiscal year
under that subsection (g).

    Section 99. Effective date.  This Act takes  effect  upon
becoming law.
    Passed in the General Assembly June 02, 2002.
    Approved June 25, 2002.
    Effective June 25, 2002.

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