40 ILCS 5/16-133.2

(40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)

(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)

Sec. 16-133.2. Early retirement without discount.

(a) A  member
retiring after June 1, 1980 and on or before June 30, 2005 (or as provided in subsection (b) of this Section), and
applying for a retirement annuity within 6 months of the last day of
teaching for which retirement contributions were required,
may elect at the time of application for a retirement annuity, to make
a one time member contribution to the System and thereby
avoid the reduction in the retirement annuity for retirement before age
60 specified in paragraph (B) of Section 16-133.  The exercise of the
election shall also obligate the last employer to make a one time
non-refundable contribution to the System.  Substitute teachers wishing to
exercise this election must teach 85 or more days in one school term with
one employer, who shall be deemed the last employer for purposes of this
Section.  The last day of teaching with that employer must be within 6
months of the date of application for retirement.  All substitute
teaching credit applied toward the required 85 days must be earned after
June 30, 1990.

The one time member and employer contributions shall be a percentage of
the retiring member's highest annual salary rate used in the determination
of the average salary for retirement annuity purposes.  However, when
determining the one-time member and employer contributions, that part of a
member's salary with the same employer which exceeds the annual salary rate
for the preceding year by more than 20% shall be excluded.  The member
contribution shall be at the rate of 7% for the lesser of the following 2
periods:  (1) for each year that the member is less than age 60; or (2) for
each year that the member's creditable service is less than 35 years.  If a
member is at least age 55 and has at least 34 years of creditable service, no
member or employer contribution for the early retirement option shall be
required.  The employer contribution shall be at the rate of 20% for each year
the member is under age 60.

Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions required.  The member
contribution shall be credited to the individual account of the member and
the employer contribution shall be credited to the Benefit Trust Reserve.  The
provisions of this subsection (a) providing for the avoidance of the reduction in retirement annuity shall
not be applicable until the member's contribution, if any, has been received
by the System; however, the date such contributions are received shall not be
considered in determining the effective date of retirement.

The number of members working for a single employer who may
retire under this subsection or subsection (b) in any year may be limited at the option
of the employer to a specified percentage of those eligible, not less
than 30%, with the right to participate to be allocated among those
applying on the basis of seniority in the service of the employer.

(b)  The provisions of subsection (a) of this Section shall remain in effect for a member retiring after June 30, 2005 and on or before July 1, 2007, provided that the member satisfies both of the following requirements:

(1) the member notified his or her employer of intent

to retire under this Article on or before the effective date of this amendatory Act of the 94th General Assembly under the terms of a contract or collective bargaining agreement entered into, amended, or renewed with the employer on or before the effective date of this amendatory Act of the 94th General Assembly; and

(2) the effective date of the member's retirement is

on or before July 1, 2007.

The member's employer must give evidence of the member's notification by providing to the  System:

(i) a copy of the member's notification to the

employer or the record of that notification;

(ii) an affidavit signed by the member and the

employer, verifying the notification; and

(iii) any additional documentation that the System

may require.

(c)  Except as otherwise provided in subsection (b), and subject to the provisions of Section 16-176, a member retiring on or after July 1, 2005 and on or before June 30, 2013 (or January 1, 2014 in the case of a member who has filed a notice of intent to retire with his or her employer on or before June 30, 2013 and attains age 55 during the period July 1, 2013 through December 31, 2013), and applying for a retirement annuity within 6 months of the last day of teaching for which retirement contributions were required, and whose last day of teaching is on or before June 30, 2013, may elect at the time of application for a retirement annuity, to make a one-time member contribution to the System and thereby avoid the reduction in the retirement annuity for retirement before age 60 specified in paragraph (B) of Section 16-133. The exercise of the election shall also obligate the last employer to make a one-time nonrefundable contribution to the System. Substitute teachers wishing to exercise this election must teach 85 or more days in one school term with one employer, who shall be deemed the last employer for purposes of this Section. The last day of teaching with that employer must be within 6 months of the date of application for retirement. All substitute teaching credit applied toward the required 85 days must be earned after June 30, 1990.

The one-time member and employer contributions shall be a percentage of the retiring member's highest annual salary rate used in the determination of the average salary for retirement annuity purposes. However, when determining the one-time member and employer contributions, that part of a member's salary with the same employer which exceeds the annual salary rate for the preceding year by more than 20% shall be excluded.  The member contribution shall be at the rate of 11.5% for the lesser of the following 2 periods: (1) for each year that the member is less than age 60; or (2) for each year that the member's creditable service is less than 35 years.  The employer contribution shall be at the rate of 23.5% for each year the member is under age 60.

Upon receipt of the application and election, the System shall determine the one-time employee and employer contributions required. The member contribution shall be credited to the individual account of the member and the employer contribution shall be credited to the Benefit Trust Reserve.  The avoidance of the reduction in retirement annuity provided under this subsection (c)  is not applicable until the member's contribution, if any, has been received by the System; however, the date that contribution is received shall not be considered in determining the effective date of retirement.

The number of members working for a single employer who may retire under this subsection (c) in any year may be limited at the option of the employer to a specified percentage of those eligible, not less than 10%, with the right to participate to be allocated among those applying on the basis of seniority in the service of the employer.

For persons not qualifying for the early retirement without discount option under this subsection (c), the option is extended for 3 years under subsection (d), but subject to the changes in eligibility, conditions, and required contributions provided in that subsection.

(d) A member who is not eligible for the early retirement without discount option under subsection (c) may qualify  for the early retirement without discount option under this subsection (d) if the member (1) retires on or after July 1, 2013 and before July 1, 2016, (2) applies for a retirement annuity within 6 months of the last day of teaching for which retirement contributions were required, and (3)  receives a certification of eligibility under this subsection from the member's last employer. Substitute teachers wishing to exercise this election must teach 85 or more days in one school term with one employer, who shall be deemed the last employer for purposes of this Section. The last day of teaching with that employer must be within 6 months of the date of application for retirement. All substitute teaching credit applied toward the required 85 days must be earned after June 30, 1990.

A qualifying member may elect at the time of application for a retirement annuity to make a one-time member contribution to the System and thereby avoid the reduction in the retirement annuity for retirement before age 60 specified in paragraph (B) of Section 16-133. The exercise of this election shall also obligate the last employer to make a one-time nonrefundable contribution to the System.

The one-time member and employer contributions shall be a percentage of the retiring member's highest annual salary rate used in the determination of the average salary for retirement annuity purposes. However, when determining the one-time member and employer contributions, that part of a member's salary with the same employer which exceeds the annual salary rate for the preceding year by more than 20% shall be excluded.  The member contribution shall be at the rate of 14.4% for the lesser of the following 2 periods: (1) for each year that the member is less than age 60; or (2) for each year that the member's creditable service is less than 35 years.  The employer contribution shall be at the rate of 29.3% for each year the member is under age 60.

Upon receipt of the application, election, and  certification of eligibility, the System shall determine the one-time employee and employer contributions required. The member contribution shall be credited to the individual account of the member and the employer contribution shall be credited to the Benefit Trust Reserve.  The avoidance of the reduction in retirement annuity provided under this subsection (d)  is not applicable until the member's contribution has been received by the System; however, the date that contribution is received shall not be considered in determining the effective date of retirement.

Eligibility to  retire under this subsection (d) shall require the approval of  the member's last employer under this Article, granted in accordance with criteria adopted by that  employer with the mutual consent of the bargaining agent of a majority of the members employed by that employer. If the employer grants its approval for a member to retire under this subsection (d), the employer shall submit a certification of eligibility for the member in a manner prescribed by the System.

The early retirement without discount option under this subsection (d) terminates on July 1, 2016.

For participants to whom subsection (b) of Section 16-132 applies, the references to age 60 in this subsection are increased as provided in subsection (b) of Section 16-132.

(Source: P.A. 98-42, eff. 6-28-13; 98-599, eff. 6-1-14.)

(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)